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', WMG's operating profit margin was 11.5%, highlighting profit earned from core business operations. Industry average for Services-Misc. Amusement & Recreation in '2021' stood at -46.2%.
• In '2022', WMG's operating profit margin was 12.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2022' stood at -42.6%. Industry average increased by 3.5% compared to previous year.
• In '2023', WMG's operating profit margin was 13.1%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2023' stood at -40.7%. Industry average increased by 1.9% compared to previous year.
• In '2024', WMG's operating profit margin was 15.1%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2024' stood at -29.6%. Industry average increased by 11.2% compared to previous year.
Overall, WMG'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.