What is an operating profit?
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Operating profit is an accounting figure that measures the profit earned from a company's ongoing core business operations, thus excluding deductions of interest and taxes.
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Without debt or tax depreciation that is an income from corporate activities. The further explanation is given below.
Explanation:
- The expression "operating profit" focuses on the financial statistic that calculates the revenues earned by a corporation from its business operations, where investment as well as tax deductions are removed from the measurement.
- Similarly, this corporate interest eliminates all income from either the ancillary activities of the corporation, such as dividends from certain companies in which an organization might be partly involved.
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