Operating Profit

Operating profit, also known as operating income, is the amount of money a company makes from its core business activities before considering interest and taxes. It is calculated by subtracting the costs directly related to producing goods or services—such as production, sales, and administrative expenses—from the company's revenue. This figure shows how efficiently a company is running its main operations and is a key indicator of its profitability from regular business activities. Operating profit does not include income or expenses from investments or financing decisions outside of the company's normal operations.