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', TGT's operating profit margin was 8.4%, highlighting profit earned from core business operations. Industry average for Department/Specialty Retail Stores in '2022' stood at 8.3%.
• In '2023', TGT's operating profit margin was 3.5%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2023' stood at 7.6%. Industry average declined by 0.7% from previous year.
• In '2024', TGT's operating profit margin was 5.3%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Department/Specialty Retail Stores in '2024' stood at 7.7%. Industry average increased by 0.1% compared to previous year.
• In '2025', TGT's operating profit margin was 5.2%, highlighting profit earned from core business operations. The decline from '2024' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2025' stood at 6.4%. Industry average declined by 1.3% from previous year.
Overall, TGT'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.