Operating Profit

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Operating profit, abbreviated as OP, is the total profit a company generates in a given accounting period from all its operations.

 

operating profit Formula

\(\large{ OP =  OR - COGS - OPEX - Dep - A  }\)  

Where:

\(\large{ OP }\) = operating profit

\(\large{ A }\) = amortization

\(\large{ COGS }\) = cost of goods sold

\(\large{ Dep }\) = depreciation

\(\large{ OPEX }\) = operating expenses

\(\large{ OR }\) = operating revenue

 

Tags: Equations for Manufacturing