Operating income measures a company’s efficiency and performance and is the profit after operating expenses have been subtracted from gross profit. Before delving further into operating income ...

The calculation for gross profit margin is ... and depreciation and amortization. Operating profit margin examines the effects of these costs. Operating profit is obtained by subtracting operating ...

Reviewed by Somer AndersonGross profit margin and operating profit margin are two metrics used to measure a company’s profitability. Gross profit margin includes the direct costs involved in ...

Interest expenses and tax provisions subtracted from net income become the EBIT figure. Either method of calculation delivers the operating income figure that is divided by revenue to bring in the ...