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
Operating profit = how much money did you make minus the total cost of actually making the thing you are selling.
Net Income = all money made – all expenses.
Basically net income will include different revenue streams as well as different expenses not directly related to operations. Operating income is only income from operations. So things like large non-recurring expenses, taxes, other investment vehicles are included in net income and not in operating.
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