Kajal. The difference between Operating profit and net profit is that net profit is after deducting interest and tax from operating profit. So you are right in that net income is the final final profit of the company. But many investors look at operating profit for cash flow decisions, since tax and interest are a given and don't materially depend on the business. Tax h as to be payed anyway and interest can always be restructured by restructuring the debt.
Dec 21 2012 10:51 AM