Operating profit

(Op P).

Operating profit is the amount of revenue after deducting the operating costs.

In a simple business, the operating profit will be the same as the profit before interest and tax.

For this reason, operating profit is sometimes treated in simple terms as being the same thing as the profit before interest and tax.

In a more complex business, there may be other items of income or expenditure, or both, in between operating profit and profit before interest and tax.

See also

• Direct costs
• Gross profit
• Indirect costs
• Net profit
• Operating profit margin
• Profit
• Profit before interest and tax
• RCOP