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', HPQ's operating profit margin was 8.9%, highlighting profit earned from core business operations. Industry average for Computer Manufacturing in '2021' stood at 9.8%.
• In '2022', HPQ's operating profit margin was 8.1%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer Manufacturing in '2022' stood at 5.9%. Industry average declined by 3.9% from previous year.
• In '2023', HPQ's operating profit margin was 7.9%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Computer Manufacturing in '2023' stood at 4.0%. Industry average declined by 1.8% from previous year.
• In '2024', HPQ's operating profit margin was 7.8%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Computer Manufacturing in '2024' stood at 0.7%. Industry average declined by 3.3% from previous year.
Overall, HPQ'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.