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Ajax said:
DerNebel said:
Ajax said:


Operating Income is not profit.

http://www.investopedia.com/terms/o/operatingincome.asp


Here is how you reach net profit on a P&L (Profit & Loss) account:

  1. Sales Revenue = Price (of product) X Quantity Sold
  2. Gross profit = sales revenue minus cost of sales and other direct costs
  3. Operating profit = Gross profit minus overheads and other indirect costs
  4. EBIT (earnings before interest and taxes) = operating profit + non-operating income
  5. Pretax Profit (EBT, earnings before taxes) = operating profit minus one off items and redundancy payments, staff restructuring minus interest payable
  6. Net profit = Pre-tax profit minus tax
  7. Retained earnings = Profit after tax minus Dividend
I would be surprised if Sony doesnt have to pay taxes.

I know what the difference between operating income and profit is. But the topic of this thread is "is Sony making money with the PS4?" and the operating income shows that they are doing that, cause I'd be highly surprised if the taxes that can be accounted towards the game division are higher than its operating income.

So it looked to me like you didn't understand what operating income really is, cause honestly your first comment was pretty pointless in connection with the thread.