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', COSM's operating profit margin was -8.1%, highlighting profit earned from core business operations. Industry average for Other Pharmaceuticals in '2021' stood at -3.3%.
• In '2022', COSM's operating profit margin was -14.8%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Other Pharmaceuticals in '2022' stood at -19.7%. Industry average declined by 16.4% from previous year.
• In '2023', COSM's operating profit margin was -40.9%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Other Pharmaceuticals in '2023' stood at -81.5%. Industry average declined by 61.8% from previous year.
• In '2024', COSM's operating profit margin was -28.0%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Other Pharmaceuticals in '2024' stood at -18.4%. Industry average increased by 63.1% compared to previous year.
Overall, COSM'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.