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', ORLY's operating profit margin was 21.9%, highlighting profit earned from core business operations. Industry average for Auto & Home Supply Stores in '2021' stood at 11.8%.
• In '2022', ORLY's operating profit margin was 20.5%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2022' stood at 11.9%. Industry average increased by 0.2% compared to previous year.
• In '2023', ORLY's operating profit margin was 20.2%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2023' stood at 9.3%. Industry average declined by 2.6% from previous year.
• In '2024', ORLY's operating profit margin was 19.5%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2024' stood at 5.9%. Industry average declined by 3.5% from previous year.
Overall, ORLY'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.