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', QMCO's operating profit margin was 3.5%, highlighting profit earned from core business operations. Industry average for Electronic Components in '2021' stood at 13.0%.
• In '2022', QMCO's operating profit margin was -0.6%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Electronic Components in '2022' stood at 4.8%. Industry average declined by 8.3% from previous year.
• In '2023', QMCO's operating profit margin was -3.6%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Electronic Components in '2023' stood at -20.1%. Industry average declined by 24.9% from previous year.
• In '2024', QMCO's operating profit margin was -8.2%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Electronic Components in '2024' stood at -16.8%. Industry average increased by 3.3% compared to previous year.
Overall, QMCO'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.