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', KZIA's operating profit margin was -42.0%, highlighting profit earned from core business operations. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at -185.4%.
• In '2024', KZIA's operating profit margin was -1240.7%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at -153.1%. Industry average increased by 32.3% compared to previous year.
Overall, KZIA's operating profit margin has been volatile but showed a downward trend over the past 2 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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