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', NSC's operating profit margin was 42.3%, highlighting profit earned from core business operations. Industry average for Railroads in '2021' stood at 24.7%.
• In '2022', NSC's operating profit margin was 39.2%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Railroads in '2022' stood at 24.4%. Industry average declined by 0.3% from previous year.
• In '2023', NSC's operating profit margin was 35.2%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Railroads in '2023' stood at 24.2%. Industry average declined by 0.2% from previous year.
• In '2024', NSC's operating profit margin was 39.9%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Railroads in '2024' stood at -104.6%. Industry average declined by 128.8% from previous year.
Overall, NSC's operating profit margin has consistently declined during the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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