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', FLOC's operating profit margin was 28.8%, highlighting profit earned from core business operations. Industry average for Metal Fabrications in '2022' stood at 5.7%.
• In '2023', FLOC's operating profit margin was 32.7%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Metal Fabrications in '2023' stood at 7.9%. Industry average increased by 2.2% compared to previous year.
• In '2024', FLOC's operating profit margin was 22.0%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Metal Fabrications in '2024' stood at -0.9%. Industry average declined by 8.8% from previous year.
Overall, FLOC's operating profit margin has been volatile but showed a downward trend over the past 3 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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