Ideal Power(Ipwr) Financials: Operating Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for IPWR
Report - operating profit margin
This chart shows the historical trend of operating profit margin for IPWR compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', IPWR's operating profit margin was -841.2%, highlighting profit earned from core business operations. Industry average for Semiconductors in '2021' stood at -19.6%.
• In '2023', IPWR's operating profit margin was -6410.6%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Semiconductors in '2023' stood at -19.8%. Industry average declined by 0.2% from previous year.
• In '2024', IPWR's operating profit margin was -12868.7%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Semiconductors in '2024' stood at -50.6%. Industry average declined by 30.8% from previous year.
Overall, IPWR's operating profit margin has been volatile but showed a downward trend over the past 3 years.
Formula: Operating Profit Margin = Operating Income / Revenue
Good Range: Often 10%-30% depending on business model.