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 '2020', FPAY's operating profit margin was 8.2%, highlighting profit earned from core business operations. Industry average for Diversified Commercial Services in '2020' stood at 8.2%.
• In '2021', FPAY's operating profit margin was 10.5%, highlighting profit earned from core business operations. The increase since '2020' reflects strengthening financial performance. Industry average for Diversified Commercial Services in '2021' stood at 9.7%. Industry average increased by 1.6% compared to previous year.
• In '2022', FPAY's operating profit margin was -5.6%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Diversified Commercial Services in '2022' stood at 8.3%. Industry average declined by 1.4% from previous year.
• In '2023', FPAY's operating profit margin was 8.6%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Diversified Commercial Services in '2023' stood at 7.4%. Industry average declined by 0.9% from previous year.
Overall, FPAY's operating profit margin has been volatile but generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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