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', LEN's operating profit margin was 18.9%, highlighting profit earned from core business operations. Industry average for Homebuilding in '2021' stood at 10.7%.
• In '2022', LEN's operating profit margin was 20.2%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Homebuilding in '2022' stood at 14.3%. Industry average increased by 3.7% compared to previous year.
• In '2023', LEN's operating profit margin was 15.9%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Homebuilding in '2023' stood at 10.3%. Industry average declined by 4.0% from previous year.
• In '2024', LEN's operating profit margin was 13.7%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Homebuilding in '2024' stood at 11.1%. Industry average increased by 0.8% compared to previous year.
Overall, LEN'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.