Oprerating
This query is : Resolved
23 September 2013
dear sir/mam i have more confusion about operating profit,in ratio analysis
what is operating profit in simple word
what is operating profit in simple word
23 September 2013
Operating profit means :
Operating Income (that means the income from the main activities of the business entity. This would exclude any non-operatiing income ie. for a manufacturing company, interest from FD, dividend income etc shall form non-operating income)
Less : Cost of goods sold
Less: Operating expenses
less: Depreciation & Amortization
Note: Interest and taxes are non-operational expenses
Operating Income (that means the income from the main activities of the business entity. This would exclude any non-operatiing income ie. for a manufacturing company, interest from FD, dividend income etc shall form non-operating income)
Less : Cost of goods sold
Less: Operating expenses
less: Depreciation & Amortization
Note: Interest and taxes are non-operational expenses
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