What Is Operating Profit

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Operating profit margin formula meaning example and interpretation

Operating Profit Margin Formula Meaning Example And Interpretation

Operating Profit Derived from gross profit operating profit is the residual income after all costs have been included Operating profit is also called operating income or earnings Operating profit removes operating expenses like overhead and other indirect costs as well as accounting costs like depreciation and amortization. It is sometimes referred to as earnings.

Operating profit margin pengertian dan cara menghitungnya accurate

Operating Profit Margin Pengertian Dan Cara Menghitungnya Accurate

What Is Operating ProfitOperating Profit = Gross Profit – Operating expenses. Why Is Operating Profit Figure Important? Operating profit tells you how much your business makes from its core operations. It measures how much money you have left after taking out all costs associated with operating the business. What is Operating Profit Operating profit is a company s earnings after deducting operating expenses and Cost of Goods Sold COGS It s also known as EBIT earnings before interest and taxes It s important to note that many companies track both operating profit and gross profit