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', UMH's operating profit margin was 18.2%, highlighting profit earned from core business operations. Industry average for Real Estate Investment Trusts in '2021' stood at 22.0%.
• In '2022', UMH's operating profit margin was 15.1%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Real Estate Investment Trusts in '2022' stood at 19.9%. Industry average declined by 2.1% from previous year.
• In '2023', UMH's operating profit margin was 16.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Real Estate Investment Trusts in '2023' stood at 19.9%. Industry average declined by 0.0% from previous year.
• In '2024', UMH's operating profit margin was 17.6%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Real Estate Investment Trusts in '2024' stood at 21.7%. Industry average increased by 1.8% compared to previous year.
Overall, UMH's operating profit margin has remained generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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