Operating Profit Vs Net Profit Leading Four Variations With Infographics
Net profit is frequently referred to as a company’s “bottom line” and is a correct indicator of a company’s profitability. Net profit margin requires into account all fees involved in a sale, creating it the most complete and conservative measure of profitability. Gross margin, on the other hand, merely appears at the fees of goods sold and ignores things such as overhead, fixed charges, interest expenses, and taxes. Operating margin further requires into account all operating expenses but still excludes…