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', TKO's operating profit margin was 37.9%, highlighting profit earned from core business operations. Industry average for Services-Misc. Amusement & Recreation in '2021' stood at -46.2%.
• In '2022', TKO's operating profit margin was 47.8%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2022' stood at -42.6%. Industry average increased by 3.5% compared to previous year.
• In '2023', TKO's operating profit margin was 26.7%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Services-Misc. Amusement & Recreation in '2023' stood at -40.7%. Industry average increased by 1.9% compared to previous year.
• In '2024', TKO's operating profit margin was 10.1%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Services-Misc. Amusement & Recreation in '2024' stood at -29.6%. Industry average increased by 11.2% compared to previous year.
Overall, TKO'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.