Operating profit is the profit that is generated by the difference between gross profit and operating expenses. All organizations that carry out economic activities can calculate such a financial indicator.
Instructions
Step 1
Determine the amount of operating expenses. To do this, add up all administrative costs (staff costs, interest on a loan or loan, etc.), business expenses (advertising, transportation costs, etc.), and the uncollectible amount of accounts payable.
Step 2
Calculate the amount of operating income. Include receipts from your counterparties, interest earned on loans and borrowings issued, receipts from leases and net income from the sale of property, plant and equipment.
Step 3
Calculate your gross profit. To do this, calculate the proceeds received from the sale of goods and the provision of services (or works). Also calculate the cost of production. Then subtract the cost from the proceeds. The resulting result will be the gross profit.
Step 4
Now move on to calculating operating profit. To do this, add the total operating income to the gross profit and subtract the operating expenses. The resulting number will be such an indicator as operating profit.
Step 5
If you are filling out the profit and loss statement (form No. 2), indicate the amount of operating expenses on line 050. To do this, add up lines 020 (cost of goods, works and services sold), 030 (selling expenses), 040 (administrative expenses). Then, from line 010 (revenue received from the sale of goods, works or services), subtract the amount received above. Write the result to line 050.
