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', VC's operating profit margin was 2.9%, highlighting profit earned from core business operations. Industry average for Auto Parts:O.E.M. in '2021' stood at -46.5%.
• In '2022', VC's operating profit margin was 4.8%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2022' stood at -46.1%. Industry average increased by 0.4% compared to previous year.
• In '2023', VC's operating profit margin was 7.1%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2023' stood at -90.0%. Industry average declined by 43.9% from previous year.
• In '2024', VC's operating profit margin was 8.4%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2024' stood at -59.7%. Industry average increased by 30.3% compared to previous year.
Overall, VC'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.