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Operating profit is a company s profit after all expenses are taken out except for the cost of debt taxes and certain one off items.
Operating profit vs net income. Operating income is revenue less any operating expenses while net income is operating income less any other non operating expenses such as interest and taxes. The key difference between operating income and net income is that while operating income is the income caused by the conducting business operations net income is the profit left after considering all the expenditure incurred. Let us discuss some of the major difference between operating profit vs net profit. Operating profit is a company s profit after all expenses are taken out except for the cost of debt taxes and certain one off items.
Operating income and net income are two essentially calculated profits in the income statement. Both operating profit vs net profit are popular choices in the market. Learn about the relationships between theses types of profits and expenses. Operating profit is the income that will remain after one deducts all the indirect expenses that are incurred to run the business from the gross profit figure and on other hands net profit.
Net income is the profit remaining after all costs incurred in. Operating profit and net profit are part of the income statement of a company.
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