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', UGRO's operating profit margin was -10.6%, highlighting profit earned from core business operations. Industry average for Industrial Specialties in '2020' stood at -10.6%.
• In '2021', UGRO's operating profit margin was -0.3%, highlighting profit earned from core business operations. The increase since '2020' reflects strengthening financial performance. Industry average for Industrial Specialties in '2021' stood at -45.2%. Industry average declined by 34.5% from previous year.
• In '2022', UGRO's operating profit margin was -18.9%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Industrial Specialties in '2022' stood at -57.5%. Industry average declined by 12.3% from previous year.
• In '2023', UGRO's operating profit margin was -23.3%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Specialties in '2023' stood at -43.9%. Industry average increased by 13.5% compared to previous year.
Overall, UGRO'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.