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', IQ's operating profit margin was -14.7%, highlighting profit earned from core business operations. Industry average for Consumer Electronics/Video Chains in '2021' stood at -8.8%.
• In '2022', IQ's operating profit margin was 4.5%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Consumer Electronics/Video Chains in '2022' stood at 6.3%. Industry average increased by 15.1% compared to previous year.
• In '2023', IQ'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 Consumer Electronics/Video Chains in '2023' stood at 5.1%. Industry average declined by 1.2% from previous year.
• In '2024', IQ's operating profit margin was 6.2%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Consumer Electronics/Video Chains in '2024' stood at 6.6%. Industry average increased by 1.6% compared to previous year.
Overall, IQ'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.