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', VALU's operating profit margin was 18.6%, highlighting profit earned from core business operations. Industry average for Investment Managers in '2021' stood at 23.4%.
• In '2022', VALU's operating profit margin was 26.7%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Investment Managers in '2022' stood at 7.6%. Industry average declined by 15.8% from previous year.
• In '2023', VALU's operating profit margin was 28.9%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Investment Managers in '2023' stood at 6.9%. Industry average declined by 0.7% from previous year.
• In '2024', VALU's operating profit margin was 24.4%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Investment Managers in '2024' stood at 19.1%. Industry average increased by 12.2% compared to previous year.
Overall, VALU's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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