Operating profit
What the business itself earned, before finance items and tax.
Operating profit is operating revenue less operating costs. It shows what the business itself earns, without interest on loans, currency movements or tax.
It is often the more honest measure of whether the trade works. A company can post a positive net profit because of a one-off gain while losing money on what it actually does — and the other way round.
The gap between operating profit and profit before tax is the finance items: interest received and paid, and gains or losses on currency and securities.
Where this figure comes from
Read from the “Operating profit” line of the income statement in the annual accounts.
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