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', FAASW's operating profit margin was -52.4%, highlighting profit earned from core business operations. Industry average for Computer Software: Prepackaged Software in '2021' stood at -36.6%.
• In '2022', FAASW's operating profit margin was -16.2%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2022' stood at -47.3%. Industry average declined by 10.6% from previous year.
Overall, FAASW's operating profit margin has been volatile but showed an upward trend over the past 2 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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