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', HON's operating profit margin was 18.0%, highlighting profit earned from core business operations. Industry average for Aerospace in '2021' stood at -47.7%.
• In '2022', HON's operating profit margin was 18.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Aerospace in '2022' stood at -62.8%. Industry average declined by 15.1% from previous year.
• In '2023', HON's operating profit margin was 19.3%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Aerospace in '2023' stood at -40.6%. Industry average increased by 22.2% compared to previous year.
• In '2024', HON's operating profit margin was 19.9%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Aerospace in '2024' stood at -15.2%. Industry average increased by 25.3% compared to previous year.
Overall, HON's operating profit margin has remained generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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