Unbelievable Total Operating Profit
The movement in total operating profit was due to the factors explained above.
Total operating profit. There are three formulas to calculate income from operations. This value also excludes earnings from ancillary businesses. In simple terms operating profit is the profit that a firm makes from its coremain operations.
The operating profit metric represents income that remains after direct and indirect costs from sales revenue is deducted. It is also referred to as operating income as well as earnings. It must be kept in mind that an operating profit could just as easily be an operating loss too depending on the kind of financial year that the firm had.
It is calculated by dividing the operating profit by total revenue Sales Revenue Sales revenue is the income received by a company from its sales of goods or the provision of services. The Operating profit doesnt include any profits earned from investments and interests. A companys operating profit is quite easy to calculate.
Operating income Total Revenue Direct Costs Indirect Costs. Calculations of operating profit do not include the deduction of interest and taxes and for this reason it is commonly referred to as EBIT or earnings before taxes. Operating profit is the total earnings from a companys core business operations excluding deductions of interest and tax.
Operating profit tells you how much money youre clearing from your core business and what your cash flow situation is. Operating profit doesnt include any profits earned from investments and interests. Total operating profit for the 2005 financial year was 2764 million including BTs share of the operating results of its associates and joint ventures.
An operating profit is the total income earned from the operations of a company before taxes interest charges or other expenses are calculated. Operating income Net Earnings Interest Expense Taxes. Total operating profit loss Total operating profit from continuing activities before goodwill amortisation and exceptional items for the 2003 financial year of 2971 million was 12 higher than in the 2002 financial year which in turn was 9 lower than the previous financial year.