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', GEHC's operating profit margin was 15.9%, highlighting profit earned from core business operations. Industry average for Medical Electronics in '2021' stood at -61.1%.
• In '2022', GEHC's operating profit margin was 13.8%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical Electronics in '2022' stood at -54.2%. Industry average increased by 6.9% compared to previous year.
• In '2023', GEHC's operating profit margin was 12.4%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical Electronics in '2023' stood at -158.6%. Industry average declined by 104.4% from previous year.
• In '2024', GEHC's operating profit margin was 13.3%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Medical Electronics in '2024' stood at -110.9%. Industry average increased by 47.7% compared to previous year.
Overall, GEHC's operating profit margin has consistently declined during the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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