Operating Profit
Operating profit is the profit earned directly from the manufacture of goods or the provision of services before indirect costs, eg overhead costs, R&D and other sources or gains or losses.
Operating profit = sales (ie turnover) - direct costs
Pre-tax Profit
Pre-tax profit takes into account indirect costs.
Pre-tax profit = operating profit - indirect costs (eg interest, central management, etc)
Net of Tax Profit
Net of tax profit is the profit after tax has been deducted.
Net of tax profit = pre-tax profits - taxation
Attributable Profits
Attributable Profits are the profits left over after all costs have been charged and which are thus available for distribution amongst preference and ordinary shareholders.
Attributable profit = net of tax profits - minority interests
Retained Profits
Retained Profit is the amount left after deducting from attributable profits any preference and ordinary dividends that have been paid. It is carried to reserves and so 'retained' by the company.
Retained profits = attributable profits - preference and ordinary dividends paid out.
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