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', WPM's operating profit margin was 50.3%, highlighting profit earned from core business operations. Industry average for Precious Metals in '2021' stood at -29.4%.
• In '2022', WPM's operating profit margin was 47.9%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Precious Metals in '2022' stood at -18.4%. Industry average increased by 11.0% compared to previous year.
• In '2023', WPM's operating profit margin was 50.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Precious Metals in '2023' stood at -11.8%. Industry average increased by 6.6% compared to previous year.
• In '2024', WPM's operating profit margin was 57.5%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Precious Metals in '2024' stood at 11.0%. Industry average increased by 22.8% compared to previous year.
Overall, WPM's operating profit margin has steadily improved over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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