Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the difference between operating profit and EBIT in the income statement?

and if we have non operating income do we add them to operating profit

user-image
Question added by هبه باوزير , محاسب عام , مركز طفلي الاول
Date Posted: 2013/06/24
Muhammad Sohaib
by Muhammad Sohaib , Accountant , Qadri Textile Mills Ltd

there is not difference both are same revenue-cos-operating expense=operating profit or can be said EBIT or PBIT

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

no difference

SALIK RAFIQUE
by SALIK RAFIQUE , GM FINANCE , SWISS PRO MANUFACTURING CO.

There is no difference between them.

Mohamed abdelrazek Elshafay
by Mohamed abdelrazek Elshafay , Treasury Accountant , Toshiba Elaraby Visual products

- 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  

 

manaf almas
by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

EBIT means earnings before interest and tax ie means the profit before paying interest and paying tax liability,interest means interest payable to investors or creditors it is not related to operating activity .so operating profit means profit after paying interest and taxes EBIT-EARNING BEFORE INTEREST & TAXES (-)INTERST (=)EBT-EARNING BEFORE TAX (-)TAX (=)PAT-PROFIT AFTER TAX

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

Muhammad Waqas
by Muhammad Waqas , Accountant , Rafiq & Sons

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.

More Questions Like This