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', NISN's operating profit margin was 24.0%, highlighting profit earned from core business operations. Industry average for Metal Fabrications in '2021' stood at 4.3%.
• In '2022', NISN's operating profit margin was 9.8%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Metal Fabrications in '2022' stood at 5.7%. Industry average increased by 1.4% compared to previous year.
• In '2023', NISN's operating profit margin was 6.9%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Metal Fabrications in '2023' stood at 7.9%. Industry average increased by 2.2% compared to previous year.
• In '2024', NISN's operating profit margin was 2.6%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Metal Fabrications in '2024' stood at -0.9%. Industry average declined by 8.8% from previous year.
Overall, NISN'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.