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', FNV's operating profit margin was 60.9%, highlighting profit earned from core business operations. Industry average for Precious Metals in '2021' stood at -29.4%.
• In '2022', FNV's operating profit margin was 62.3%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Precious Metals in '2022' stood at -18.4%. Industry average increased by 11.0% compared to previous year.
• In '2023', FNV's operating profit margin was 60.6%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Precious Metals in '2023' stood at -11.8%. Industry average increased by 6.6% compared to previous year.
• In '2024', FNV's operating profit margin was 65.1%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Precious Metals in '2024' stood at 11.0%. Industry average increased by 22.8% compared to previous year.
Overall, FNV's operating profit margin has steadily improved over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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