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', ZIP's operating profit margin was -1.1%, highlighting profit earned from core business operations. Industry average for Computer Software: Programming Data Processing in '2021' stood at -37.9%.
• In '2022', ZIP's operating profit margin was 10.8%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2022' stood at -17.2%. Industry average increased by 20.8% compared to previous year.
• In '2023', ZIP's operating profit margin was 12.3%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2023' stood at -29.8%. Industry average declined by 12.7% from previous year.
• In '2024', ZIP's operating profit margin was 0.3%, highlighting profit earned from core business operations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2024' stood at -20.7%. Industry average increased by 9.2% compared to previous year.
Overall, ZIP's operating profit margin has been volatile but generally stable over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

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