Calculation formula of pre-tax operating profit

The calculation formula of pre-tax operating profit is pre-tax operating profit = operating income-operating costs-business taxes and surcharges-sales expenses-management expenses-financial expenses-asset impairment losses-other non-management expenses. Operating income: refers to the amount that an enterprise repays its customers through direct sales and services during a period of operation. Operating cost: refers to the expenses directly paid by an enterprise in the process of producing and selling products and providing services. Business tax and surcharges: refers to the invoice tax paid by enterprises to the government or tax authorities in a certain period of time, as well as other expenses stipulated by local laws and regulations. Sales expenses: expenses incurred by an enterprise to promote and sell products or provide services. Management expenses: refers to the expenses incurred in the management of an enterprise, such as the salaries, benefits and training fees of employees within the company. Financial expenses: refers to a series of financial expenses paid by enterprises, including bank charges, interest, exchange losses, etc. Asset impairment loss: the loss caused by the depreciation or reduction of assets in a certain period of time. The essence of profit is the manifestation of enterprise profit and the labor achievement of all employees. Enterprises make profits by producing high-quality goods for the market. Compared with surplus value, profit is not only the same in quality, but also the same in quantity. The difference of profit is that surplus value is for variable capital, and profit is for all costs.