Operating profit is the amount of money a company makes from its core business operations, excluding any income from investments or sales of assets. It is calculated by subtracting operating expenses, such as wages, rent, and materials, from total revenue. This figure helps assess how efficiently a company is running its day-to-day activities. Investors and analysts often look at operating profit to gauge a company's performance and profitability. It provides insight into how well a company is managing its costs and generating income from its primary business, making it a key indicator of financial health in the context of business analysis.