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Operating profit helps to separate a company s profit by showing.
Income from operations net profit. Example of gross and operating profit and net income below is a sample income statement to illustrate the differences and locations of the three profitability metrics. Net income is the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales. Operating profit is the remaining income of the company after paying off operating expenses and net profit is the remaining income of the company after paying all costs incurred by the company which includes all expenses tax and interest. Net income is earned revenues minus incurred expenses including taxes and costs of goods sold cogs.
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.
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