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 '2022', DELL's operating profit margin was 4.6%, highlighting profit earned from core business operations. Industry average for Computer Manufacturing in '2022' stood at 5.9%.
• In '2023', DELL's operating profit margin was 5.6%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Manufacturing in '2023' stood at 4.0%. Industry average declined by 1.8% from previous year.
• In '2024', DELL's operating profit margin was 6.1%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Manufacturing in '2024' stood at 0.7%. Industry average declined by 3.3% from previous year.
• In '2025', DELL's operating profit margin was 6.5%, highlighting profit earned from core business operations. The increase since '2024' reflects strengthening financial performance. Industry average for Computer Manufacturing in '2025' stood at 6.5%. Industry average increased by 5.8% compared to previous year.
Overall, DELL's operating profit margin has been volatile but generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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