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', JAKK's operating profit margin was 6.2%, highlighting profit earned from core business operations. Industry average for Recreational Games/Products/Toys in '2021' stood at -19.2%.
• In '2022', JAKK's operating profit margin was 7.7%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Recreational Games/Products/Toys in '2022' stood at -30.1%. Industry average declined by 10.9% from previous year.
• In '2023', JAKK's operating profit margin was 8.3%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Recreational Games/Products/Toys in '2023' stood at -16.6%. Industry average increased by 13.5% compared to previous year.
• In '2024', JAKK's operating profit margin was 5.7%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Recreational Games/Products/Toys in '2024' stood at -24.6%. Industry average declined by 8.0% from previous year.
Overall, JAKK's operating profit margin has been volatile but generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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