Definition of Operating profit:
Operating profit can be calculated using the following formula:.
The term “operating profit” refers to an accounting metric measuring the profits a company generates from its core business functions, where the deduction of interest and taxes is excluded from the calculation. This operating value likewise excludes any profits earned from the firm's ancillary investments, such as earnings from other businesses a company may be partially vested in. .
A profit from business operations (gross profit less operating expenses) before deduction of interest and taxes.
Alternative term for operating income.
Synonyms of Operating profit
Financial gain, Gain, Return, Returns, Payback, Dividend, Interest, Yield, Surplus, Excess
How to use Operating profit in a sentence?
- You should figure out what your operating profit will be so that you can correctly budget out for your needs.
- We had a lot of operating profit to work with and that made everyone really excited because e would be starting a new journey.
- Each year, the airport allocates one per cent of its gross operating profits to arts sponsorship.
- You need to be correctly analyze what your operating profit will be so you can budget how much you can spend.
Meaning of Operating profit & Operating profit Definition