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', EHC's operating profit margin was 16.4%, highlighting profit earned from core business operations. Industry average for Hospital/Nursing Management in '2021' stood at 7.7%.
• In '2022', EHC's operating profit margin was 14.5%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Hospital/Nursing Management in '2022' stood at 5.2%. Industry average declined by 2.5% from previous year.
• In '2023', EHC's operating profit margin was 15.2%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2023' stood at 6.7%. Industry average increased by 1.5% compared to previous year.
• In '2024', EHC's operating profit margin was 16.1%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2024' stood at 7.1%. Industry average increased by 0.4% compared to previous year.
Overall, EHC's operating profit margin has remained generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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