Operating Profit financial definition of Operating Profit. Operating Profit finance term by the Free Online Dictionary.

Operating profit (or loss)

Revenue from a firm's regular activities less costs and expenses and before income deductions.

Earnings Before Interest and Tax

A measure of a company's ability to produce income on its operations in a given year. It is calculated as the company's revenue less its expenses (such as overhead) but not subtracting its tax liability or interest paid on debt. It is important to note that EBIT does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. EBIT represents cash available to pay off creditors in the event of liquidation and, as such, it is closely watched, especially when the company incurs little depreciation or amortization. It is also called operating profit.

operating profit

See operating income.

Operating Profit

What Does Operating Profit Mean?

The profit earned from a firm's core business operations. It does not include profit earned from the firm's investments (such as earnings from firms in which the company has a partial interest) and the effects of interest and taxes. Also known as earnings before interest and taxes (EBIT). It is calculated as shown here:

Investopedia explains Operating Profit

As an example, suppose ABC Printing Company earns $50 million from its core printing-related operations, $10 million from its 40% stake in XYZ Corp., and $3.5 million from interest earned in its money market and bank accounts. In addition, the company spends $10 million in production-related costs. Overall, the company's operating profit is $40 million. This is calculated by subtracting the $10 million in production costs from the $50 million in operating revenue. The other $10 million and $3.5 million in earnings are not included in operating income because they are investment income.

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After Tax Operating Income Earnings Before Interest and Tax Earnings Before Interest and Taxes EBIT Economic Value Added Loss Carry-Back Net Operating Profit after Tax Net Operating Profit Less Adjusted Taxes Operating Expense operating income Operating Margin Operating Profit Margin Operating Revenue OPEX Profitability Ratios Return on Capital Employed Return on Investment Capital ROCE Shareholder Value Added			In the April-September period, NTT also booked an operating profit of 646. NTT incurs 30.5% fall in net profit in April-September 1st half by Japan Weekly Monitor Operating profit was up 19pc but because of a one-off gain last time on the disposal of surplus land which added BD6. Batelco profit up by Gulf Daily News (Manama, Bahrain) 9 million dollars), and operating profit gained 57 percent from the same period in 2007 to 89. Air Berlin posts best quarter ever despite global slowdown by AFP / AFP Global Edition			Operaciones poscierre Operador Operador de inversores institucionales Operador de la punta contraria Operador de valores Operador especializado en bonos operating and easement agreement Operating Assets operating budget operating capital Operating Cash Flow Operating Cash Flow Ratio Operating Company Operating Cycle Operating Expense operating expense escalation operating expense ratio operating expenses Operating Exposure Operating in the Red operating income operating lease operating leverage Operating Loss Operating Margin Operating Profit Operating Profit Margin Operating Rate Operating Ratio Operating Ratios Operating Revenue Operating Risk Operating Statement operating statements Operating Unit operation de sauvetage Operation financiere Operation Iraqi Freedom operation of law Operational Audit Operationally efficient market Operations Department Operations research Operator Operazione di copertura Operazioni a termine OPEX Opinion Opinion del asesor Opinion legal opinion of title			Operating margin Operating Margins Operating Margins Operating Materials & Supplies Operating Measurement System Operating Methods operating microscope operating microscope operating microscope Operating Missions as a Node on the Internet Operating Nuclear Facility Safety Operating Parameter Limit Operating Partnership Unit Operating Period Operating Permit to Construct Operating Plan Operating Plan and Budget operating point operating position operating power Operating Pressure Operating Pressure Operating Pressure Ratio Operating Problems Requiring Research & Development operating procedure operating procedure operating procedure operating procedure operating procedure Operating Procedures Outline Sheet Operating Profit Operating Profit After Tax Operating Profit Before Depreciation and Amortisation Operating Profit Before Interest and Tax Operating profit margin Operating profit margin Operating profit margin Operating Profit Margins Operating Profit Margins operating profits Operating Program Operating Range Operating Range Operating rate Operating Rates Operating ratio Operating ratio Operating ratios Operating ratios Operating Reactor Operating Reliability Working Group Operating reserve Operating Resource Management Operating Resource Management System Operating Result Before Depreciation and Amortization Operating Return On Sales operating revenue Operating Revenues Operating Review Committee Operating risk Operating Risks