operating profit

operating profit definition - finance
A financial measurement that is calculated by subtracting sales, general, and administrative expenses (SG&A) from gross profit. Operating profit shows how much money a company has to spend in order to sell its goods. It is an indicator of profitability.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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