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', CPRT's operating profit margin was 42.2%, highlighting profit earned from core business operations. Industry average for Retail-Auto Dealers and Gas Stations in '2021' stood at 7.4%.
• In '2022', CPRT's operating profit margin was 39.3%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Retail-Auto Dealers and Gas Stations in '2022' stood at 2.1%. Industry average declined by 5.3% from previous year.
• In '2023', CPRT's operating profit margin was 38.4%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Retail-Auto Dealers and Gas Stations in '2023' stood at -44.3%. Industry average declined by 46.4% from previous year.
• In '2024', CPRT's operating profit margin was 37.1%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Retail-Auto Dealers and Gas Stations in '2024' stood at 4.9%. Industry average increased by 49.2% compared to previous year.
Overall, CPRT'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.