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', XP's operating profit margin was -31.1%, highlighting profit earned from core business operations. Industry average for Investment Bankers/Brokers/Service in '2021' stood at 14.0%.
• In '2022', XP's operating profit margin was -60.0%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Investment Bankers/Brokers/Service in '2022' stood at 15.4%. Industry average increased by 1.3% compared to previous year.
• In '2023', XP's operating profit margin was -59.2%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Investment Bankers/Brokers/Service in '2023' stood at 7.7%. Industry average declined by 7.7% from previous year.
• In '2024', XP's operating profit margin was -52.7%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Investment Bankers/Brokers/Service in '2024' stood at 9.0%. Industry average increased by 1.3% compared to previous year.
Overall, XP's operating profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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