Operating Profit (or Loss)

Operating profit is the profit that a company makes from its core business. It does not include income from any assets that the company may have, nor does it include the cost of interest payments, taxes or depreciation. It is a good indicator of the company’s core business performance. If the costs associated with running the core business are greater than the revenue that it generates, the company has made an operating loss for the period.

See also:

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