How Do You Spell OPERATING PROFIT?

Pronunciation: [ˈɒpəɹˌe͡ɪtɪŋ pɹˈɒfɪt] (IPA)

The spelling of the word "operating profit" is quite straightforward, except for a slight variation in the pronunciation of the "t" sound. The word is spelled as /ˈɒpəreɪtɪŋ ˈprɒfɪt/ in IPA phonetic transcription, with the first syllable pronounced as "op-er-ay-ting" and the second syllable pronounced as "praw-fit." The "t" sound at the end of "operating" should be pronounced as a "t" sound, while the "t" sound at the end of "profit" should be pronounced as a glottal stop, denoted with a small "ʔ" symbol.

OPERATING PROFIT Meaning and Definition

1. Operating profit, commonly referred to as operating income or operating earnings, is a financial metric that measures the profitability of a company’s core operations after deducting all the direct and indirect costs associated with producing and delivering its products or services. It reflects the financial result of a company's ability to generate revenue from its day-to-day businesses and operations.

   Operating profit is calculated by subtracting the company's operating expenses and cost of goods sold (COGS) from its gross revenue. This figure excludes any non-operating income or expenses, such as interest income, interest expenses, taxes, or one-time gains or losses from investments.

   Operating profit provides valuable insights into a company's efficiency and profitability purely from its fundamental operations, showing how successful a company is at generating and managing its core business profits. It serves as a crucial measure in assessing a company's financial health and performance, enabling investors, analysts, and stakeholders to evaluate the company's operational efficiency, identify trends, compare it with industry peers, and make informed business decisions.

   By analyzing operating profit over time, companies can identify potential areas of improvement in their operations, cost management strategies, and revenue generation efforts. Moreover, operating profit is often used as a basis for calculating other key financial ratios, such as operating profit margin, return on assets (ROA), return on equity (ROE), or earnings before interest, taxes, depreciation, and amortization (EBITDA), which provide deeper insights into a company's profitability and financial performance.

Common Misspellings for OPERATING PROFIT

• iperating profit
• kperating profit
• lperating profit
• pperating profit
• 0perating profit
• 9perating profit
• ooerating profit
• olerating profit
• o-erating profit
• o0erating profit
• opwrating profit
• opsrating profit
• opdrating profit
• oprrating profit
• op4rating profit
• op3rating profit
• opeeating profit
• opedating profit
• opefating profit
• opetating profit

Etymology of OPERATING PROFIT

The word "operating profit" is a compound term combining two words: "operating" and "profit".

- "Operating" comes from the Latin word "operari", which means "to work, operate, or be in action". The term is related to the Latin word "opus", meaning "work" or "effort". Over time, the term gained a business-related connotation, referring to the income or expenditure resulting from the regular operations or day-to-day activities of a company.

- "Profit" comes from the Latin word "proficere", which means "to make progress or do well". The term evolved to represent the financial gain or benefit obtained from a business activity or investment after all expenses and costs have been deducted.

Plural form of OPERATING PROFIT is OPERATING PROFITS