Life360(Lif) Financials: Operating Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for LIF

Report - operating profit margin

This chart shows the historical trend of operating profit margin for LIF compared to its industry average over the recent years.

Ratio Definition and Interpretation

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', LIF's operating profit margin was -28.6%, highlighting profit earned from core business operations. Industry average for nan in '2021' stood at -41.4%.
• In '2022', LIF's operating profit margin was -41.3%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for nan in '2022' stood at -40.1%. Industry average increased by 1.3% compared to previous year.
• In '2023', LIF's operating profit margin was -9.8%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for nan in '2023' stood at -14.2%. Industry average increased by 25.9% compared to previous year.
• In '2024', LIF's operating profit margin was -2.1%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for nan in '2024' stood at 15.5%. Industry average increased by 29.7% compared to previous year.
Overall, LIF's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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