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', SMRT's operating profit margin was -64.8%, highlighting profit earned from core business operations. Industry average for EDP Services in '2021' stood at -62.4%.
• In '2022', SMRT's operating profit margin was -62.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for EDP Services in '2022' stood at -56.8%. Industry average increased by 5.6% compared to previous year.
• In '2023', SMRT's operating profit margin was -18.2%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for EDP Services in '2023' stood at -48.9%. Industry average increased by 7.9% compared to previous year.
• In '2024', SMRT's operating profit margin was -23.9%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for EDP Services in '2024' stood at -53.5%. Industry average declined by 4.7% from previous year.
Overall, SMRT'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.