Opendoor Technologies(Open) Financials: Operating Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for OPEN
Report - operating profit margin
This chart shows the historical trend of operating profit margin for OPEN compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', OPEN's operating profit margin was -7.1%, highlighting profit earned from core business operations. Industry average for Real Estate in '2021' stood at -6.5%.
• In '2022', OPEN's operating profit margin was -5.5%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Real Estate in '2022' stood at -0.9%. Industry average increased by 5.5% compared to previous year.
• In '2023', OPEN's operating profit margin was -5.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Real Estate in '2023' stood at -21.4%. Industry average declined by 20.5% from previous year.
• In '2024', OPEN's operating profit margin was -5.9%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Real Estate in '2024' stood at -11.8%. Industry average increased by 9.6% compared to previous year.
Overall, OPEN's operating profit margin has been volatile but generally stable over the past 4 years.
Formula: Operating Profit Margin = Operating Income / Revenue
Good Range: Often 10%-30% depending on business model.