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Operating Profit Guide: Definition, Calculation & Analysis
Understanding the core measure of a company's operational efficiency and profitability
What is Operating Profit?
Operating profit, also known as operating income or EBIT (Earnings Before Interest and Taxes), represents the profit generated from a company's core business operations before accounting for interest and taxes. It provides a clear picture of a business's operational efficiency and profitability.
Operating Profit Formula:
Operating Profit = Revenue - Cost of Goods Sold (COGS) - Operating Expenses
Operating Profit Calculator
Operating Profit:
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Operating Profit Margin:
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