A crucial metric in assessing a company's core operating performance by excluding the effects of finance and tax expenses from operating profit calculations.
Free Cash Flow (FCF) is a crucial financial metric that indicates the amount of cash generated or consumed by a company after accounting for capital expenditures. It is instrumental for assessing a company's ability to pay dividends, reduce debt, acquire other businesses, or invest in growth opportunities.
Operating Income, also known as Operating Profit or Operating Earnings, is a measure of a company's profitability that excludes interest and income tax expenses. It is used to evaluate the performance of a company's core business activities.
Operating profit (loss) is the difference between the revenues of a business and the related costs and expenses, excluding income or expenses from sources other than its regular activities and before income taxes; synonymous with net operating profit (loss) and operating income (loss).
The profit or loss generated by a company's core business activities, calculated before accounting for extraordinary items, interest, and taxes.
In standard costing, the variance consisting of the difference between the standard operating profit budgeted to be made on the items sold and the actual profits made. The analysis of the profit variance into its constituent sales, direct labor, direct material, and overhead variances provides the management of the organization with information regarding the source of the gains and losses compared to the predetermined standard.
Trading Profit represents the profit of an organization before deductions for interest, directors' fees, auditors' remuneration, and other similar expenses. It is crucial for assessing the core operating efficiency of a business.
