Hi Guys,
query1)According to my understanding
gross profit=Net sales – Cost of goods sold
operating profit=gross profit-cost of goods sold-amortization and depreciation-other operating expenses
Net income(final profit)=Gross profit – operating profit – taxes – interest.
Please tell me if this is correct.Because i found diff explainations wen i tried to google the above terms, and i got slightly confused.please correct me if am wrong
query2)Is net income referred to as earnings.Is this figure used in calculating earnings per share.pls clarify
query3)I was going through the financials for airtel in rediff site and i found that gross profit lesser than operating profit(which according to my understanding is logically not possible),so i checked moneycontrol site which was having gross profit higher than operating profit.How come two sites give different numbers in these type of key financial data?please tell me which is correct
link for rediff:http://money.rediff.com/companies/bharti-airtel-ltd/15200022/results-quarter
link for moneycontrol:http://www.moneycontrol.com/financials/bhartiairtel/results/quarterly-results/BA08
Thanks in Advance,
Vj