Revenue Minus Operating Expenses

Synonyms for operating income include earnings before interest and taxes operating profit recurring profit and operating earnings.

Revenue minus operating expenses. And you usually won t subtract extraordinary gains and losses. Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi. Derived from gross profit operating profit reflects the. Gross profit is the total revenue minus the expenses directly related to the production of goods for sale called the cost of goods sold.

Net profit 27 6 2 million. Net profit 19 million. The three main profit margin metrics are gross profit total revenue minus cost of goods sold cogs operating profit revenue minus cogs and operating expenses and net profit revenue minus all expenses. Operating expenses include selling general and administrative expenses but exclude interest and taxes.

Gross profit is sales minus cost of goods sold. The operating income of a company is the gross profit minus operating expenses. Upvote 0 views 2313 followers 4. You will not subtract interest and income taxes.

Operating income is your gross income minus operating expenses. Operating income is sometimes referred to as earnings before interests and taxes or ebit. Question added by muhammad mujtaba shafique rj dream fm106 date posted. Gross profit minus operating expenses is best defined as net income or net sales or operating income.

While gross profit represents the profits earned from selling wallets operating income represents the profits earned from running a business of selling wallets. Relevance and uses of opex. Gross gross profit is total revenue minus cost of goods sold cogs. Accounting sales direct commerce finance accountancy.

Operating income can also be calculated by deducting operating expenses from gross profit. Negative operating income is an operating loss which means that cost of goods sold.