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', BKV's operating profit margin was 45.4%, highlighting profit earned from core business operations. Industry average for Oil & Gas Production in '2021' stood at 26.3%.
• In '2022', BKV's operating profit margin was 56.3%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2022' stood at 39.4%. Industry average increased by 13.1% compared to previous year.
• In '2023', BKV's operating profit margin was -11.3%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 27.5%. Industry average declined by 11.9% from previous year.
• In '2024', BKV's operating profit margin was -21.7%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at 8.6%. Industry average declined by 18.9% from previous year.
Overall, BKV's operating profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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