Operating Profit is a measure of a company's earning power from ongoing operations, calculated as the difference between operating revenues and operating expenses. This is measured on a 4 year historical basis.
Operating Profit is Revenue less core operating expenses. These include Cost of Sales (costs directly attributable to sales) and also Selling and General Administrative Expenses (such as rent, payroll, etc).
Operating Profit is often taken to be a good measure of the operational performance of a business as it does not take into account non operational costs such as interest expenses and taxes.
That said, these are very real cash costs which cannot be ignored altogether.
| Ticker | Name | Op Profit | StockRank™ |
|---|---|---|---|
| LON:RIO | Rio Tinto | 16490.00 | 84 |
| LON:BATS | British American Tobacco | 9820.00 | 62 |
| LON:SMT | Scottish Mortgage Investment Trust | 9217.09 | 0 |
| LON:HSBA | HSBC Holdings | 8777.00 | 89 |
| LON:ULVR | Unilever | 8323.00 | 66 |