[Jack Sparrow]

Operating income is exactly that; income from normal course of business. In an income statement, you have three main headings each of which is a combination (addition/subtraction) of certain income/expenses.

Operating profit:
The first combines (simplified format) is sales (could be gate receipts in the case of football clubs) minus cost of sales (what it cost to produce the sales) minus depreciation (depreciation in value of buildings, vehicles, equipment) and minus fixed expenses (wages, rent, transport, bank charges, general office expenses, heating & lighting, etc). The outcome of that (let that be positive or negative) is called the operating profit.

Profit before tax:
You then take the operating profit and deduct interest charges from banks or other entities that you are borrowing from. That gives you your profit before tax.

Net profit:
Finally you deduct tax, dividends and get your net profit.


That is basically what an income statement consists of.

Operating profit is a loss for chelsea most likely because their wages are over the roof ? That could be an explanation.

1 yr value change .. Value in this case must be Net Worth, Equity or Total Assets (all the same) .. An increase is attributed to extra capital employed in the company.

Good enough ? (IMG:style_emoticons/default/tongue.gif)

You absolutely rock!!! So despite having one of the highest wage bills in Serie A and running Milanello, we still make an operating profit.

So is Operating income = Revenues - Operating costs

No debts?? I can remember Galliani said in January that Kaka - the key to resolve our debts problems....

I think Beckham, Ronaldinho, all the crazy friendlies and of course all the associated sponsorship might have taken care of that. (IMG:style_emoticons/default/wink.gif)

[Rossoneri7]

So is Operating income = Revenues - Operating costs

hmm no, operating cost would be cost of sales

An equation would be:

Operating Profit (or Loss) Less (or plus) other expenses/income = Revenue.

Think of it this way Jack .. Operating profit or loss is the top part .. then after adding (subtracting) other income (expenses) you get the Revenue which is the bottom part.

[PatitoFeo]

Ronnie and Becks have sold some jerseys to help out with revenue, although the results on the pitch have been lacking