The operating profit of a company is the total earnings from its core business functions for a given period, excluding interest and taxes. It also excludes profits from ancillary investments, such as earnings from other businesses in which a company
Net profit excludes the costs of interest and taxes paid by the company. It is sometimes referred to as the firm’s “bottom line” because it is at the bottom of the income statement. Net profit is calculated by deducting interest
A company’s gross profit is its financial gain after deducting the costs of manufacturing and distributing its goods or services. These expenses are called the cost of goods sold. The amount of money actually earned is referred to as the