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', PEG's operating profit margin was 18.1%, highlighting profit earned from core business operations. Industry average for Power Generation in '2021' stood at 12.7%.
• In '2022', PEG's operating profit margin was 15.1%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Power Generation in '2022' stood at 6.3%. Industry average declined by 6.3% from previous year.
• In '2023', PEG's operating profit margin was 32.9%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Power Generation in '2023' stood at -0.5%. Industry average declined by 6.9% from previous year.
• In '2024', PEG's operating profit margin was 22.9%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Power Generation in '2024' stood at 16.2%. Industry average increased by 16.7% compared to previous year.
Overall, PEG's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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