What’s the difference between operating income, and revenue?
October 20, 2008
Willzville asked:
OK there’s this company I’m doing a school report on. Its says it makes the following:
Revenue: $626.7 Mill
Gross Profit: $291.6 Mill
Operating Income: $63.4 Mill
Total Net Income: $45.1 Mill
OK there’s this company I’m doing a school report on. Its says it makes the following:
Revenue: $626.7 Mill
Gross Profit: $291.6 Mill
Operating Income: $63.4 Mill
Total Net Income: $45.1 Mill
Why is the revenue & gross profit so much higher than the operating and net income? How is the revenue and operating income different, and how is the gross profit and total net income different?
Thanks for any help!
October 21st, 2008 at 4:12 pm
Revenue less Cost of Sales = Gross Profit… less Operating Expenses = Operating Income… less Taxes = Net Income