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', BHP's operating profit margin was 50.8%, highlighting profit earned from core business operations. Industry average for Coal Mining in '2021' stood at -12.8%.
• In '2022', BHP's operating profit margin was 50.5%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Coal Mining in '2022' stood at 25.1%. Industry average increased by 37.8% compared to previous year.
• In '2023', BHP's operating profit margin was 40.3%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Coal Mining in '2023' stood at 4.8%. Industry average declined by 20.3% from previous year.
• In '2024', BHP's operating profit margin was 41.1%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Coal Mining in '2024' stood at 14.7%. Industry average increased by 9.9% compared to previous year.
Overall, BHP's operating profit margin has consistently declined during the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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