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', HRL's operating profit margin was 9.4%, highlighting profit earned from core business operations. Industry average for Meat/Poultry/Fish in '2021' stood at 5.9%.
• In '2022', HRL's operating profit margin was 10.3%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Meat/Poultry/Fish in '2022' stood at -113.7%. Industry average declined by 119.6% from previous year.
• In '2023', HRL's operating profit margin was 8.7%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Meat/Poultry/Fish in '2023' stood at 2.6%. Industry average increased by 116.3% compared to previous year.
• In '2024', HRL's operating profit margin was 8.5%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Meat/Poultry/Fish in '2024' stood at 7.7%. Industry average increased by 5.1% compared to previous year.
Overall, HRL'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.