Understanding operating profits helps you make better and informed business decisions. If you are serious about business, then it’s important to understand key financial concepts like operating profit.
Small businesses, arts organisations and social enterprises can often overlook their operating profit when it comes to budgeting and long-term planning. To make the most of your resources, it’s important to understand what this term means.
This video will break down some key points about operating profit and provide examples of how you can use this information for your business or organisation.
What is operating profit
This figure tells you how much money your business earned from its core operations, after deducting the costs of goods sold and other associated expenses. By Understanding operating profit, you can see whether your company is generating a healthy return on its own activities. And if not, you can identify areas where changes need to be made. So let’s take a closer look at what operating profit is and how you can use it to improve your business performance.
Operating profit is an important metric, Furthermore Understanding operating profit is important help power your business forward. In this video
- Firstly, I explain what it is
- Secondly, how we calculate it
- Finally, why it’s so important.
Are you using operating profit as a measure in your business? If not, I encourage you to start. It can be a powerful tool for understanding how well your business is doing and where improvements can be made. Thanks for watching!
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