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', SHCO's operating profit margin was -25.2%, highlighting profit earned from core business operations. Industry average for Hotels/Resorts in '2021' stood at -5.3%.
• In '2022', SHCO's operating profit margin was -6.9%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Hotels/Resorts in '2022' stood at 6.3%. Industry average increased by 11.7% compared to previous year.
• In '2023', SHCO's operating profit margin was -0.5%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Hotels/Resorts in '2023' stood at 6.8%. Industry average increased by 0.4% compared to previous year.
• In '2024', SHCO's operating profit margin was 0.6%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Hotels/Resorts in '2024' stood at 2.7%. Industry average declined by 4.0% from previous year.
Overall, SHCO'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.