Operating profit

Operating Profit is the amount of money a company makes after deducting all expenses excluding interest and taxes.

Expanded Definition

<math>Operating\ Profit=Revenue - Operating\ Expenses</math>

Operating profit is expressed in dollars and is the amount of profit you have for each $1 in sales after deducting all expenses other than interest and taxes. It is also often referred to as EBIT, or Earnings Before Interest and Taxes.

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Related Terms

• Operating margin
• Earnings Before Interest and Taxes (EBIT)
• Income statement

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