Traditional Culture Encyclopedia - Traditional culture - What does operating profit equal?
What does operating profit equal?
Operating Profit = Operating Revenue - Operating Costs - Operating Taxes and Surcharges - Selling Expenses - Administrative Expenses - Finance Costs -Asset Impairment Loss + Gain on Change in Fair Value (-Loss on Change in Fair Value) + Gain on Investment (-Investment Loss) + Gain on Disposal of Assets (-Loss on Disposal of Assets) + Other Gains.
Operating profit margin = (operating profit/operating income) × 100%, operating profit margin indicates the ability of the enterprise to obtain profit through production and operation, the higher the ratio indicates that the enterprise's profitability is stronger.
Where:
Operating income = main business income + other business income; operating costs = main business costs + other business costs; operating profit margin = (operating profit ÷ operating income) × 100%. Operating profit margin indicates the ability of the enterprise to obtain profits through production and operation, the higher the rate, the stronger the profitability of the enterprise.
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