Operating Results of a Financial Statement
The operating results of a financial statement refer to the performance of a company's core business activities during a specific period. This section provides key insights into how well the company is generating revenue and managing its expenses.

Key Components of Operating Results:
- Revenue: This is the total amount of money earned by the company from its primary activities, such as sales of goods or services.
- Cost of Goods Sold (COGS): This represents the direct costs associated with producing goods or delivering services. It includes raw materials, labor, and manufacturing overhead.
- Gross Profit: This is the difference between revenue and COGS, indicating how efficiently the company is generating profit from its core operations.
- Operating Expenses: These are the costs incurred to run the day-to-day operations of the business, such as salaries, rent, utilities, and marketing expenses.
- Operating Income: Also known as operating profit, this is the difference between gross profit and operating expenses. It shows the profitability of the company's core business activities.
- Net Income: This is the bottom line of the financial statement, representing the company's total profit after accounting for all expenses, including taxes and interest.

Importance of Operating Results:
- The operating results of a financial statement provide investors and stakeholders with valuable insights into the financial health and performance of the company.
- By analyzing these results, stakeholders can assess the efficiency of the company's operations, its ability to generate profit, and its overall sustainability.
- Comparing the operating results of different periods can help identify trends, strengths, and weaknesses in the company's performance, guiding strategic decision-making.