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 '2020', TLN's operating profit margin was -8.9%, highlighting profit earned from core business operations. Industry average for Electric Utilities: Central in '2020' stood at -8.9%.
• In '2021', TLN's operating profit margin was -25.0%, highlighting profit earned from core business operations. The decline from '2020' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2021' stood at 16.8%. Industry average increased by 25.7% compared to previous year.
• In '2022', TLN's operating profit margin was 4.3%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2022' stood at 15.9%. Industry average declined by 0.9% from previous year.
• In '2024', TLN's operating profit margin was 8.0%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2024' stood at 7.2%. Industry average declined by 8.7% from previous year.
Overall, TLN'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.