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', DAR's operating profit margin was 11.3%, highlighting profit earned from core business operations. Industry average for Packaged Foods in '2021' stood at -5.7%.
• In '2022', DAR's operating profit margin was 10.7%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2022' stood at -7.2%. Industry average declined by 1.5% from previous year.
• In '2023', DAR's operating profit margin was 8.8%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2023' stood at -4.8%. Industry average increased by 2.5% compared to previous year.
• In '2024', DAR's operating profit margin was 4.9%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2024' stood at -2.8%. Industry average increased by 1.9% compared to previous year.
Overall, DAR'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.