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', PN's operating profit margin was 7.8%, highlighting profit earned from core business operations. Industry average for Retail: Computer Software & Peripheral Equipment in '2021' stood at -41.4%.
• In '2022', PN's operating profit margin was 5.4%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Retail: Computer Software & Peripheral Equipment in '2022' stood at -33.6%. Industry average increased by 7.7% compared to previous year.
• In '2023', PN's operating profit margin was 5.3%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Retail: Computer Software & Peripheral Equipment in '2023' stood at -12.6%. Industry average increased by 21.0% compared to previous year.
• In '2024', PN's operating profit margin was 2.2%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Retail: Computer Software & Peripheral Equipment in '2024' stood at 3.1%. Industry average increased by 15.6% compared to previous year.
Overall, PN'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.