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', REVG's operating profit margin was 3.7%, highlighting profit earned from core business operations. Industry average for Auto Manufacturing in '2021' stood at -21.9%.
• In '2022', REVG's operating profit margin was 2.0%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Auto Manufacturing in '2022' stood at -106.8%. Industry average declined by 85.0% from previous year.
• In '2023', REVG's operating profit margin was 3.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Auto Manufacturing in '2023' stood at -154.5%. Industry average declined by 47.7% from previous year.
• In '2024', REVG's operating profit margin was 4.5%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Auto Manufacturing in '2024' stood at -78.7%. Industry average increased by 75.8% compared to previous year.
Overall, REVG's operating profit margin has been volatile but generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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