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', GGB's operating profit margin was 25.6%, highlighting profit earned from core business operations. Industry average for Steel/Iron Ore in '2021' stood at 1.2%.
• In '2022', GGB's operating profit margin was 20.1%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2022' stood at 9.1%. Industry average increased by 7.9% compared to previous year.
• In '2023', GGB's operating profit margin was 14.3%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2023' stood at -10.9%. Industry average declined by 20.0% from previous year.
• In '2024', GGB's operating profit margin was 9.5%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2024' stood at -16.2%. Industry average declined by 5.3% from previous year.
Overall, GGB'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.