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', WTRG's operating profit margin was 32.1%, highlighting profit earned from core business operations. Industry average for Water Supply in '2021' stood at 24.8%.
• In '2022', WTRG's operating profit margin was 28.9%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Water Supply in '2022' stood at 26.1%. Industry average increased by 1.2% compared to previous year.
• In '2023', WTRG's operating profit margin was 33.7%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Water Supply in '2023' stood at 25.8%. Industry average declined by 0.3% from previous year.
• In '2024', WTRG's operating profit margin was 36.3%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Water Supply in '2024' stood at -8.5%. Industry average declined by 34.3% from previous year.
Overall, WTRG'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.