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', WCN's operating profit margin was 17.4%, highlighting profit earned from core business operations. Industry average for Environmental Services in '2021' stood at -44.8%.
• In '2022', WCN's operating profit margin was 17.5%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Environmental Services in '2022' stood at -3.1%. Industry average increased by 41.7% compared to previous year.
• In '2023', WCN's operating profit margin was 18.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Environmental Services in '2023' stood at 6.8%. Industry average increased by 9.9% compared to previous year.
• In '2024', WCN's operating profit margin was 18.8%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Environmental Services in '2024' stood at -1.0%. Industry average declined by 7.8% from previous year.
Overall, WCN'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.