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', FORD's operating profit margin was -2.0%, highlighting profit earned from core business operations. Industry average for Plastic Products in '2021' stood at -41.6%.
• In '2022', FORD's operating profit margin was 1.5%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Plastic Products in '2022' stood at -7.2%. Industry average increased by 34.4% compared to previous year.
• In '2023', FORD's operating profit margin was 0.4%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Plastic Products in '2023' stood at -3.8%. Industry average increased by 3.3% compared to previous year.
• In '2024', FORD's operating profit margin was -5.7%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Plastic Products in '2024' stood at -9.3%. Industry average declined by 5.4% from previous year.
Overall, FORD'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.