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', RERE's operating profit margin was -11.5%, highlighting profit earned from core business operations. Industry average for Other Specialty Stores in '2021' stood at -49.0%.
• In '2022', RERE's operating profit margin was -8.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Other Specialty Stores in '2022' stood at -18.9%. Industry average increased by 30.1% compared to previous year.
• In '2023', RERE's operating profit margin was -1.3%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Other Specialty Stores in '2023' stood at -15.7%. Industry average increased by 3.2% compared to previous year.
• In '2024', RERE's operating profit margin was 0.2%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Other Specialty Stores in '2024' stood at -5.6%. Industry average increased by 10.1% compared to previous year.
Overall, RERE'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.