Miyamotoo said: People don't understand that bottom of line is profit at end, not operating income. And if we look profit, things are quite difrent. |
Operating Profit is a better indication of a how a business is performing than Net Profit. But I have changed the thread title to specify Operating Profit.
"Operating income and operating profit are synonyms for the income produced by operations in a business. This income is the net of revenues minus operating expenses, cost of goods sold and depreciation reported on a company's income statement. Operating income/profit is an important number for investors to review on the income statement, as it shows how efficiently the company generates a profit."
"Many analysts emphasize the importance of operating profit over net profit, simply because it shows the core of the business and how well it can perform. Net profit can be influenced by many different variables from year to year, but if operating profit steadily increases, an investor knows the business is on the right track."
Net Profit is affected by many things that are even outside of Nintendo's Control, Operating Profit shows exactly how well the company is performing.