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', WALD's operating profit margin was 0.6%, highlighting profit earned from core business operations. Industry average for Package Goods/Cosmetics in '2020' stood at 0.6%.
• In '2021', WALD's operating profit margin was -1.1%, highlighting profit earned from core business operations. The decline from '2020' may indicate some operational or financial challenges. Industry average for Package Goods/Cosmetics in '2021' stood at -44.5%. Industry average declined by 45.1% from previous year.
• In '2023', WALD's operating profit margin was -37.6%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Package Goods/Cosmetics in '2023' stood at 7.2%. Industry average increased by 51.7% compared to previous year.
• In '2024', WALD's operating profit margin was -19.6%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2024' stood at 10.4%. Industry average increased by 3.2% compared to previous year.
Overall, WALD'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.