Operating Profit

Categories: Accounting, Tax, Metrics

This is the profit earned from a company's everyday main business. It doesn't include the money made from other investments, interest, or profit from owning a state in subsidiary companies.

To figure out your operating profit, you take your total money made, then subtract your cost of goods and services, operating expenses, depreciation, and amortization.

Is the number larger than one? If so, you're making money. Congrats.

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