Operating profit is the total earnings from your core business (over any period) before making deductions for interest, expenses, and tax payments. It does not include any profits made from a business' non-core areas. Operating profit is used to understand how well a company allocates its resources.
What is a good operating profit for a startup?
First of all, if your company is generating a profit, that’s an accomplishment in and of itself. However, there isn’t a definitive answer to the question “what is a good profit for my company?” What you should ask yourself instead is, “what’s good profit in my industry?” and use that as your benchmark.
Is 10% a good operating profit margin?
As mentioned, good profit margins vary by industry, but as a general rule of thumb, 10% operating profit margin is considered average. —
Is operating profit the same as turnover?
Turnover and profit represent a company's revenue, but they calculate that income using different inputs. Turnover — also called net sales — is the pure income from sales a company makes, while profit is the total turnover remaining after the organization accounts for all expenses, both variable and fixed.
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