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 '2022', RBC's operating profit margin was 16.4%, highlighting profit earned from core business operations. Industry average for Metal Fabrications in '2022' stood at 5.7%.
• In '2023', RBC's operating profit margin was 20.8%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Metal Fabrications in '2023' stood at 7.9%. Industry average increased by 2.2% compared to previous year.
• In '2024', RBC's operating profit margin was 22.2%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Metal Fabrications in '2024' stood at -0.9%. Industry average declined by 8.8% from previous year.
• In '2025', RBC's operating profit margin was 22.8%, highlighting profit earned from core business operations. The increase since '2024' reflects strengthening financial performance. Industry average for Metal Fabrications in '2025' stood at 12.7%. Industry average increased by 13.6% compared to previous year.
Overall, RBC'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.