Operating margin of Orchids Paper Products Company
Operating margin is an indicator of profitability and is often used to compare the profitability of companies and industries of differing sizes. Companies are collections of projects and markets, individual areas can be judged on how successful they are at adding to the corporate net profit. Not all projects are of equal size, however, and one way to adjust for size is to divide the profit by sales revenue. The resulting ratio is the percentage of sales revenue that gets 'returned' to the company as net profits after all the related costs of the activity are deducted.
Orchids Paper Products Company manufactures and sells tissue products for at-home and away from home markets in the United States. Its products include paper towels, bathroom tissues, and paper napkins. The company offers its products under Colortex, My Size, Velvet, Big Mopper, Orchids Supreme, Clean Scents, and Tackle brands; and licensed brands, such as Virtue, Truly Green, Golden Gate Paper, and Big Quality. It also sells parent rolls to other converters. The company serves discount retailers, grocery stores, grocery wholesalers and cooperatives, convenience stores, janitorial supply stores, and stores in the food service market. Orchids Paper Products Company was founded in 1976 and is based in Pryor, Oklahoma.
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