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', WETH's operating profit margin was 38.7%, highlighting profit earned from core business operations. Industry average for Computer peripheral equipment in '2020' stood at 23.0%.
• In '2021', WETH's operating profit margin was 32.7%, highlighting profit earned from core business operations. The decline from '2020' may indicate some operational or financial challenges. Industry average for Computer peripheral equipment in '2021' stood at -27.9%. Industry average declined by 50.9% from previous year.
• In '2022', WETH's operating profit margin was 30.1%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer peripheral equipment in '2022' stood at -18.0%. Industry average increased by 9.9% compared to previous year.
• In '2023', WETH's operating profit margin was 31.9%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Computer peripheral equipment in '2023' stood at -7.6%. Industry average increased by 10.3% compared to previous year.
Overall, WETH's operating profit margin has consistently declined during the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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