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 '2022', LAKE's operating profit margin was 13.6%, highlighting profit earned from core business operations. Industry average for Industrial Specialties in '2022' stood at -57.5%.
• In '2023', LAKE's operating profit margin was 4.9%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Specialties in '2023' stood at -43.9%. Industry average increased by 13.5% compared to previous year.
• In '2024', LAKE's operating profit margin was 4.8%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Specialties in '2024' stood at -33.0%. Industry average increased by 11.0% compared to previous year.
• In '2025', LAKE's operating profit margin was 0.8%, highlighting profit earned from core business operations. The decline from '2024' may indicate some operational or financial challenges. Industry average for Industrial Specialties in '2025' stood at -79.2%. Industry average declined by 46.3% from previous year.
Overall, LAKE's operating profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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