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', GT's operating profit margin was 6.2%, highlighting profit earned from core business operations. Industry average for Automotive Aftermarket in '2021' stood at 3.7%.
• In '2022', GT's operating profit margin was 5.1%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Automotive Aftermarket in '2022' stood at 4.4%. Industry average increased by 0.8% compared to previous year.
• In '2023', GT's operating profit margin was 3.5%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Automotive Aftermarket in '2023' stood at 5.0%. Industry average increased by 0.6% compared to previous year.
• In '2024', GT's operating profit margin was 4.9%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Automotive Aftermarket in '2024' stood at 2.7%. Industry average declined by 2.4% from previous year.
Overall, GT'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.