Bp Prudhoe Bay Royalty(Bpt) Financials: Operating Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for BPT

Report - operating profit margin

This chart shows the historical trend of operating profit margin for BPT compared to its industry average over the recent years.

Ratio Definition and Interpretation

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', BPT's operating profit margin was 83.0%, highlighting profit earned from core business operations. Industry average for Integrated oil Companies in '2021' stood at 15.2%.
• In '2022', BPT's operating profit margin was 98.2%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Integrated oil Companies in '2022' stood at 22.1%. Industry average increased by 6.9% compared to previous year.
• In '2023', BPT's operating profit margin was 80.0%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Integrated oil Companies in '2023' stood at 18.0%. Industry average declined by 4.1% from previous year.
Overall, BPT's operating profit margin has consistently declined during the past 3 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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