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 '2022', HWKN's operating profit margin was 9.2%, highlighting profit earned from core business operations. Industry average for Specialty Chemicals in '2022' stood at 10.9%.
• In '2023', HWKN's operating profit margin was 9.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Specialty Chemicals in '2023' stood at 10.5%. Industry average declined by 0.4% from previous year.
• In '2024', HWKN's operating profit margin was 11.3%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Specialty Chemicals in '2024' stood at 10.3%. Industry average declined by 0.2% from previous year.
• In '2025', HWKN's operating profit margin was 12.2%, highlighting profit earned from core business operations. The increase since '2024' reflects strengthening financial performance. Industry average for Specialty Chemicals in '2025' stood at 12.2%. Industry average increased by 1.9% compared to previous year.
Overall, HWKN's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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