To calculate operating profit, subtract operating expenses from gross profit. Also referred to as operating income, operating profit represents the total profits, before taxes, that a business generates from its operatio... More »

Operating profit only covers the gross profit, minus direct operating expenses for the company while net profit includes all gains and losses by the company, including tax payments. Operating profits do not cover taxes p... More »

Operating margin is calculated by dividing operating income by net sales or revenue. The result is often expressed as a percentage. Operating income is a measurement of profit that includes all expenses except interest a... More »

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Net income plus operating expenses is equal to gross profit. The gross profit is what a company earns after it sells a product and pays all other costs associated with the production and sale of it. More »

To calculate profit and loss, evaluate revenue, cost of goods sold and the expenses incurred, then subtract cost of goods sold and expenses from sales. A positive result denoted profit, while a negative result indicates ... More »

A profit and loss worksheet includes all sources of income from a business and all expenses necessary to earn that income, explains Accounting Basics. The report can cover any time period for which you want to measure th... More »

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To prepare an income statement, first gather together sales and cost of goods sold data to determine business profits, and then gather the operating expenses. Once this information is presented in a table, subtract the t... More »

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