<h2>Operating Profit Margin</h2>
<p>The <strong>operating profit margin</strong> is a financial metric that measures a company's operating income as a percentage of its revenue. It reflects the profitability of a company's core business operations, excluding non-operating income and expenses.</p>

<h2>How It Works</h2>
<p>To calculate the operating profit margin, follow these steps:</p>
<ul>
  <li>Subtract operating expenses (e.g., cost of goods sold, salaries, rent) from revenue to find operating income.</li>
  <li>Divide operating income by revenue and multiply by 100 to get the operating profit margin as a percentage.</li>
</ul>
<p>Formula: Operating Profit Margin = (Operating Income / Revenue) x 100</p>

<h2>Why It Matters for Traders</h2>
<p>The operating profit margin is crucial for traders as it:</p>
<ul>
  <li>Provides insight into a company's core business profitability and efficiency.</li>
  <li>Helps compare the profitability of different companies within the same industry.</li>
  <li>Assists in identifying trends and potential changes in a company's financial health.</li>
</ul>

<h2>Example</h2>
<p>Consider two tech companies, Apple and Samsung, with the following data (in billions of USD):</p>
<table>
  <tr>
    <th>Company</th>
    <th>Revenue</th>
    <th>Operating Income</th>
    <th>Operating Profit Margin</th>
  </tr>
  <tr>
    <td>Apple</td>
    <td>365.8</td>
    <td>108.9</td>
    <td>29.8%</td>
  </tr>
  <tr>
    <td>Samsung</td>
    <td>279.6</td>
    <td>37.6</td>
    <td>13.5%</td>
  </tr>
</table>
<p>In this case, Apple's higher operating profit margin indicates greater profitability in its core business compared to Samsung.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The operating profit margin measures a company's core business profitability.</li>
  <li>It helps traders compare companies and identify trends in their financial health.</li>
  <li>Traders can use this metric alongside other indicators to make informed trading decisions.</li>
</ul>