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', USPH's operating profit margin was 15.2%, highlighting profit earned from core business operations. Industry average for Medical/Nursing Services in '2021' stood at -21.0%.
• In '2022', USPH's operating profit margin was 11.9%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at -22.4%. Industry average declined by 1.4% from previous year.
• In '2023', USPH's operating profit margin was 11.6%, highlighting profit earned from core business operations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2023' stood at -13.0%. Industry average increased by 9.5% compared to previous year.
• In '2024', USPH's operating profit margin was 9.8%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2024' stood at -11.5%. Industry average increased by 1.4% compared to previous year.
Overall, USPH'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.