(3) What is
an
operating profit?
Answers
Answer:
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.
Operating profit can be calculated using the following formula:
Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization
Explanation:
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What is Operating Profit?
Answer:
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