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', HYFM's operating profit margin was -0.6%, highlighting profit earned from core business operations. Industry average for Consumer Specialties in '2021' stood at 4.9%.
• In '2022', HYFM's operating profit margin was -25.9%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Consumer Specialties in '2022' stood at 3.6%. Industry average declined by 1.3% from previous year.
• In '2023', HYFM's operating profit margin was -21.9%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Consumer Specialties in '2023' stood at 0.6%. Industry average declined by 3.0% from previous year.
• In '2024', HYFM's operating profit margin was -21.4%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Consumer Specialties in '2024' stood at 0.1%. Industry average declined by 0.5% from previous year.
Overall, HYFM's operating profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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