Operating profit is the profit obtained from the business activities of enterprises, which can be used to evaluate the profitability and operating efficiency of enterprises. The calculation of operating profit needs to subtract the operating cost, business tax and additional expenses of the enterprise, which will be introduced in detail below.
1. Definition of operating profit
Operating profit is the net profit obtained by an enterprise after deducting operating costs and taxes. Simply put, it is the profit that an enterprise obtains by selling products or providing services, excluding non-recurring gains and losses and financial investment income. Operating profit is an important indicator reflecting the results of business activities of enterprises, and it is also one of the concerns of investors, analysts, banks and other institutions on the profitability and business risks of enterprises.
2. The concept and calculation method of operating cost
Operating cost, also known as "cost of sales", refers to the expenses incurred in the process of enterprise sales. Including raw materials, labor, manufacturing expenses, sales expenses, headquarters management expenses, etc. The calculation method of operating cost is: opening inventory+current purchasing ending inventory.
3. The concept and calculation method of business tax and additional expenses
Business taxes and surcharges refer to all kinds of taxes and other surcharges paid by enterprises to the state tax authorities in the process of production and operation. Including value-added tax, consumption tax, urban maintenance and construction tax, etc. The calculation method is: the accumulation of various taxes.
4. Operating profit calculation formula
Operating profit = operating income-operating cost-business tax and surcharges. It can be seen that the operating profit is the balance of the net income obtained by the company after deducting the cost of sales and taxes.
5. The role of operating profit
Operating profit is one of the important standards for shareholders and investors to measure the operating ability of an enterprise, and it is also an important reference index for evaluating the sustainable operating ability of an enterprise. Generally speaking, we can know the profitability and efficiency of enterprises by comparing the operating profit levels of different enterprises in the same industry.
6. Problems needing attention
When calculating the operating profit, we need to pay attention to the correctness of the classification principle and the accuracy of bookkeeping. Moreover, when comparing operating profits, we should make a comprehensive analysis according to factors such as enterprise scale and product type, so as to draw more accurate conclusions.
Generally speaking, the calculation of operating profit is a very important content in the financial management of modern enterprises, and it is also an important reference index to evaluate the operating ability of enterprises. In the process of enterprise management, calculating operating profit can help enterprises to better analyze and understand their own profitability, make scientific management decisions, and achieve sustained and stable development.