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', OABI's operating profit margin was -102.5%, highlighting profit earned from core business operations. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2021' stood at -53.8%.
• In '2022', OABI's operating profit margin was -45.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2022' stood at -12.6%. Industry average increased by 41.2% compared to previous year.
• In '2023', OABI's operating profit margin was -203.2%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2023' stood at -167.0%. Industry average declined by 154.4% from previous year.
• In '2024', OABI's operating profit margin was -282.3%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2024' stood at -72.9%. Industry average increased by 94.1% compared to previous year.
Overall, OABI'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.