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YOGESH NAMDEV (Querist)
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23 September 2013 dear sir/mam i have more confusion about operating profit,in ratio analysis
what is operating profit in simple word

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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

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