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 '2023', PRAX's operating profit margin was -5164.4%, highlighting profit earned from core business operations. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at -144.9%.
• In '2024', PRAX's operating profit margin was -2340.3%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at -153.1%. Industry average declined by 8.3% from previous year.
Overall, PRAX's operating profit margin has been volatile but showed an upward trend over the past 2 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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