[Financial Statements] The reason why "operating profit" is the most important, meaning "net profit"
*Operating profit
a profit made purely through business
It refers to the amount remaining after deducting sales and general management expenses from the gross profit from the company's main business activities.
Operating profit is the profit generated by the company's main business activities, minus sales cost, sales cost, and general management cost. Operating profit is subtracted from sales cost, and general management cost and sales cost. Literally, it refers to profits made purely through operations. Operating profit = sales - cost of sales - (management cost + sales cost) General management and sales expenses include labor costs, taxes and various utility bills, depreciation costs, and advertising costs as necessary for product sales and corporate maintenance activities. It also reflects the results of corporate restructuring, such as bad debt amortization costs, reduction of personnel, and consolidation of departments, which treat uncollectible bonds such as credit sales, bills to receive, and receivables as expenses.
*Net profit for the period
Total net income over a period of time, including operating profit
The net profit of the remaining company after deducting fixed costs and non-operating gains or losses from contributions to net profit means net profit for a certain period of time. Net profit is the subtraction of corporate tax after subtracting sales costs, sales costs, and management costs from sales and adding or subtracting non-operating profits, costs, special profits and losses.