operating profit
Revenue minus costs
Operating profit is the money a business earns from its core activities after subtracting operating expenses like wages, rent, and materials, but before deducting interest and taxes.
It measures how efficiently a company runs its main business, separate from financing decisions or tax situations: The retailer's operating profit fell despite rising sales.
- cost of goods soldDirect expenses for inventory sold
- depreciationAsset value reduction over time
- expensesMoney spent on things
- EBITProfit before interest, taxes
- revenueBusiness income total
EBITDA · amortization · variable costs · cost cutting · break-even point · overhead costs · in the black · quarterly earnings · fixed costs · investment analysis · net sales · production costs · cash flow analysis · running the numbers · pricing strategy · budgeting · forecasting · contribution margin
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- financial analysisnet income, EBITDA, ROI, gross margin, net margin
- financialsincome, earnings, net income, revenue, net earnings
- financial gainsrevenue, returns, capital gains, earnings, income
- profitsnet earnings, gross earnings, bottom line, earnings, net income
- taxationtax, income tax, sales tax, tax return, tax refund
operating profitgross profit
Earnings before operating expenses
net income · net profit · bottom line · net earnings · gross margin
operating, profit, operate, operates, operated, operation, operations, operational, operative