Operating profit is a financial metric that measures the profit a company makes from its core business operations, excluding any income from non-operational activities like investments or sales of assets. It is calculated by subtracting operating expenses, such as wages and rent, from gross profit, which is the revenue remaining after deducting the cost of goods sold. This figure is important because it provides insight into a company's operational efficiency and profitability. A higher operating profit indicates that a company is effectively managing its costs and generating revenue from its primary activities, which is crucial for long-term sustainability and growth in the competitive market.