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', MERC's operating profit margin was 19.2%, highlighting profit earned from core business operations. Industry average for Paper in '2021' stood at 10.3%.
• In '2022', MERC's operating profit margin was 17.2%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Paper in '2022' stood at 11.6%. Industry average increased by 1.2% compared to previous year.
• In '2023', MERC's operating profit margin was -7.8%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Paper in '2023' stood at 5.4%. Industry average declined by 6.2% from previous year.
• In '2024', MERC's operating profit margin was 3.6%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Paper in '2024' stood at 7.5%. Industry average increased by 2.1% compared to previous year.
Overall, MERC'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.