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', BHE's operating profit margin was 2.8%, highlighting profit earned from core business operations. Industry average for Electrical Products in '2021' stood at -79.0%.
• In '2022', BHE's operating profit margin was 3.4%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Electrical Products in '2022' stood at -50.0%. Industry average increased by 29.0% compared to previous year.
• In '2023', BHE's operating profit margin was 4.2%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Electrical Products in '2023' stood at -25.9%. Industry average increased by 24.1% compared to previous year.
• In '2024', BHE's operating profit margin was 4.4%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Electrical Products in '2024' stood at -24.1%. Industry average increased by 1.8% compared to previous year.
Overall, BHE's operating profit margin has been volatile but generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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