What is the operating profit?

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Operating profit, also known as operating income or operating earnings, is a financial metric that measures a company's profitability from its core operations. It is calculated by subtracting the operating expenses from the operating revenue. Operating profit does not include non-operating income or expenses such as interest income or interest expenses.

In simple terms, operating profit reflects the profit generated by a company's primary business activities before considering taxes and interest payments. It is a key indicator of a company's operational efficiency and financial health, as it helps assess how well a company is generating profits from its core operations.

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