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', SMWB's operating profit margin was -48.0%, highlighting profit earned from core business operations. Industry average for Computer Software: Programming Data Processing in '2021' stood at -37.9%.
• In '2022', SMWB's operating profit margin was -45.5%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2022' stood at -17.2%. Industry average increased by 20.8% compared to previous year.
• In '2023', SMWB's operating profit margin was -13.2%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2023' stood at -29.8%. Industry average declined by 12.7% from previous year.
• In '2024', SMWB's operating profit margin was -3.9%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2024' stood at -20.7%. Industry average increased by 9.2% compared to previous year.
Overall, SMWB'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.