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', YSG's operating profit margin was -27.8%, highlighting profit earned from core business operations. Industry average for Package Goods/Cosmetics in '2021' stood at -44.5%.
• In '2022', YSG's operating profit margin was -25.1%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2022' stood at 9.4%. Industry average increased by 53.9% compared to previous year.
• In '2023', YSG's operating profit margin was -16.4%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2023' stood at 7.2%. Industry average declined by 2.2% from previous year.
• In '2024', YSG's operating profit margin was -12.4%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2024' stood at 10.4%. Industry average increased by 3.2% compared to previous year.
Overall, YSG'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.