Operating profit = operating income-operating costs-business taxes and surcharges-sales expenses-management expenses-financial expenses-asset impairment loss+fair value change income (-fair value change loss)+investment income (-investment loss)+asset disposal income (-asset disposal loss)+other income.
Two abilities of whether an enterprise can make a profit.
1, increase revenue and reduce expenditure, and do a good job in cost control. "The only really effective way to cut costs is to reduce homework at the same time. Try to delete those invalid costs, but you can't do things that you shouldn't do lightly. " Shift the foothold of cost control from the traditional production stage to the product planning and design stage, and from the downstream of the business to the source. That is, eliminate non-value-added activities, improve and improve the efficiency of value-added activities, and optimize the activity chain and value chain.
2. Profit-oriented performance management. To implement the profit-oriented development strategy, if an enterprise wants to survive, develop and grow, it must first formulate a development strategy and make a good overall plan for the next period, which is the basis and principle of enterprise behavior, the main norm that restricts the short-term behavior and long-term behavior of enterprises, and the basis for judging whether the enterprise behavior is reasonable!
References:
Baidu Encyclopedia operating profit entry