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However we must add.
Revenue vs operating profit. It can also be found in the income statement. Operating income is a company s profit after deducting operating expenses which are the costs of running the day to day operations. Revenue is the total amount of income generated by a company for the sale of its goods or services before any expenses are deducted. Operating income which is synonymous with.
Profit can be found on the income statement. Operating profit was 2 2 million for the period which is calculated by taking gross profit of 3 million minus operating expenses of 1 million labeled total expenses. It s the first item if we start with net sales of the income statement. Revenue can also be of two types operating revenue and non operating revenue.
Rather net profit is the last item on the income statement. Two important terms found on any company s income statement are operating profit and net income both profit metrics show the level of profitability. Let s now look at the head to head difference between operating profit vs. Operating income is the sum total of a company s profit after.
Operating profit is the profit that a business earns through running its revenue producing operations prior to the need to deduct interest taxes and any single period extraordinary events. Revenue implies the money received by the company from its day to day operations alongwith the non operating activities.
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