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', ITT's operating profit margin was 14.8%, highlighting profit earned from core business operations. Industry average for Fluid Controls in '2021' stood at 13.5%.
• In '2022', ITT's operating profit margin was 15.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Fluid Controls in '2022' stood at 12.6%. Industry average declined by 0.9% from previous year.
• In '2023', ITT's operating profit margin was 16.3%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Fluid Controls in '2023' stood at 14.3%. Industry average increased by 1.7% compared to previous year.
• In '2024', ITT's operating profit margin was 17.3%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Fluid Controls in '2024' stood at 14.8%. Industry average increased by 0.5% compared to previous year.
Overall, ITT's operating profit margin has steadily improved over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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