What Is Operating Profitability on a Balance Sheet?
Operating profitability on an income statement represents the amount of money made after all costs of goods sold and selling, general and administrative expenses have been subtracted from all regular operating revenue. It does not include “below the line” items such as interest expense, taxes, gains or losses on assets or securities, or one-time events such as goodwill impairment or lawsuit settlements. Operating profitability is a good indicator of the normal profitability of a business.
