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', MGRM's operating profit margin was -1635.9%, highlighting profit earned from core business operations. Industry average for Medical/Dental Instruments in '2021' stood at -52.1%.
• In '2023', MGRM's operating profit margin was -4731.0%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Dental Instruments in '2023' stood at -75.2%. Industry average declined by 23.1% from previous year.
Overall, MGRM'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.