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 '2023', TOYO's operating profit margin was 19.2%, highlighting profit earned from core business operations. Industry average for Miscellaneous manufacturing industries in '2023' stood at 6.1%.
• In '2024', TOYO's operating profit margin was 5.0%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Miscellaneous manufacturing industries in '2024' stood at 3.7%. Industry average declined by 2.3% from previous year.
Overall, TOYO's operating profit margin has been volatile but showed a downward trend over the past 2 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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