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', BBU's operating profit margin was 5.2%, highlighting profit earned from core business operations. Industry average for Engineering & Construction in '2021' stood at -3.3%.
• In '2022', BBU's operating profit margin was 5.1%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Engineering & Construction in '2022' stood at -21.8%. Industry average declined by 18.5% from previous year.
• In '2023', BBU's operating profit margin was 6.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Engineering & Construction in '2023' stood at 5.3%. Industry average increased by 27.1% compared to previous year.
• In '2024', BBU's operating profit margin was 11.0%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Engineering & Construction in '2024' stood at -44.7%. Industry average declined by 50.0% from previous year.
Overall, BBU's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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