Name: Operating Profit Margin

Definition: Operating profit margin focuses on profits from the company’s core business — before interest payments and taxes. It reflects how well the business manages operating costs relative to sales. Strong operating margins show efficient day-to-day operations. Shrinking margins may reveal rising overhead, pricing weakness, or declining efficiency.

Interpretation:
• In '2021', AVY's operating profit margin was 12.7%, highlighting profit earned from core business operations. Industry average for Containers/Packaging in '2021' stood at 0.9%.
• In '2022', AVY's operating profit margin was 11.9%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2022' stood at -10.0%. Industry average declined by 10.9% from previous year.
• In '2023', AVY's operating profit margin was 11.5%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2023' stood at 4.2%. Industry average increased by 14.2% compared to previous year.
• In '2024', AVY's operating profit margin was 12.7%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Containers/Packaging in '2024' stood at 1.7%. Industry average declined by 2.6% from previous year.
Overall, AVY's operating profit margin has remained generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

Good Range: Often 10%-30% depending on business model.