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', RMCO's operating profit margin was -156.6%, highlighting profit earned from core business operations. Industry average for Multi-Sector Companies in '2022' stood at -98.9%.
• In '2023', RMCO's operating profit margin was -54.5%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2023' stood at -44.2%. Industry average increased by 54.7% compared to previous year.
• In '2024', RMCO's operating profit margin was -38.7%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2024' stood at -30.1%. Industry average increased by 14.1% compared to previous year.
Overall, RMCO's operating profit margin has been volatile but showed an upward trend over the past 3 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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