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', UEIC's operating profit margin was 3.9%, highlighting profit earned from core business operations. Industry average for Consumer Electronics/Appliances in '2021' stood at -1.0%.
• In '2022', UEIC's operating profit margin was 2.7%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Consumer Electronics/Appliances in '2022' stood at -0.8%. Industry average increased by 0.2% compared to previous year.
• In '2023', UEIC's operating profit margin was -7.7%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Consumer Electronics/Appliances in '2023' stood at -19.0%. Industry average declined by 18.3% from previous year.
• In '2024', UEIC's operating profit margin was -1.9%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Consumer Electronics/Appliances in '2024' stood at -42.3%. Industry average declined by 23.2% from previous year.
Overall, UEIC'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.