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', EYE's operating profit margin was 8.6%, highlighting profit earned from core business operations. Industry average for Ophthalmic Goods in '2021' stood at -125.8%.
• In '2022', EYE's operating profit margin was 3.5%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Ophthalmic Goods in '2022' stood at -198.9%. Industry average declined by 73.2% from previous year.
• In '2023', EYE's operating profit margin was 1.6%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Ophthalmic Goods in '2023' stood at -135.1%. Industry average increased by 63.9% compared to previous year.
• In '2024', EYE's operating profit margin was 1.6%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Ophthalmic Goods in '2024' stood at -107.2%. Industry average increased by 27.9% compared to previous year.
Overall, EYE'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.