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and if we have non operating income do we add them to operating profit
no difference
- Operating profit is the profit after deducting the COGS , the administration EXPand marketing EXP from the revenu but before deduct the treasury EXP.
- EBIT it is the profit before deduct the the interests and taxes
- so that there is no difference between operting profit and EBIT
operating profit is the profit generated by the mainstream activities of the company, after adding the income and expenses from non core activities such as dividends from shares, rentals etc that would become EBIT
EBIT stands for earnings before interest and taxes. Operating profit is a company's earnings before deducting interest payments and income taxes. In some cases, there may therefore be no real difference between EBIT and operating profit. In other cases, certain factors that may cause an extra profit or loss to be made or incurred through activities not directly connected to the company's operations could make the difference.