What is the difference between operating profits and net income ?

Question

I was looking WWE’s business operations, then I saw there was a vast discrepancy between operating profit vs net income.

I’ve heard the same thing applies for real estate and stocks.

In: Economics

Answer 1

I borrow a hundred dollars from a payday lender with an effective interest rate of ten percent a week.

I buy lemons, sugar, cups, and build a kiosk, and pay a city licensing fee to open a lemonade stand with that $100.

Over the next seven days I sell $200 of lemonade, giving me an operating profit of $100.

I then repay $110 to the lender, leaving me with net income of $90.