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', SOTK's operating profit margin was 11.0%, highlighting profit earned from core business operations. Industry average for Industrial Machinery/Components in '2022' stood at -41.1%.
• In '2023', SOTK's operating profit margin was 4.5%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2023' stood at -45.3%. Industry average declined by 4.2% from previous year.
• In '2024', SOTK's operating profit margin was 6.0%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2024' stood at -37.8%. Industry average increased by 7.5% compared to previous year.
• In '2025', SOTK's operating profit margin was 4.9%, highlighting profit earned from core business operations. The decline from '2024' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2025' stood at 10.9%. Industry average increased by 48.7% compared to previous year.
Overall, SOTK's operating profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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