UK Operating Income and Net Profit

[Antonio1986]

Hello!
Can someone explain me their difference?
Net Profit can be calculated from the Income Statement and is equal = (Total Revenues - Total Expenses) - (Depreciation + Taxation + Interest)

Operating Income = ???

Thank you!

 

[smartthought]

Operating income is Revenue - cost of goods sold - selling and administrative costs. This is before interest income/expense and tax expense are adjusted.

 

[Riskreep]

Gross profit is profit after direct expenses - all expenses traceable to bringing the product or service to final sale condition.

Operating profit is profit after the above, but also after all fixed costs have been deducted - rent, rates, head office costs etc - ie overheads - but before finance charges (interest) and tax have been deducted.