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', PRIM's operating profit margin was 5.3%, highlighting profit earned from core business operations. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2021' stood at 6.2%.
• In '2022', PRIM's operating profit margin was 4.0%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2022' stood at 6.4%. Industry average increased by 0.2% compared to previous year.
• In '2023', PRIM's operating profit margin was 4.5%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2023' stood at 5.1%. Industry average declined by 1.3% from previous year.
• In '2024', PRIM's operating profit margin was 5.0%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2024' stood at 5.5%. Industry average increased by 0.4% compared to previous year.
Overall, PRIM's operating profit margin has remained generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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