WHAT DO MEAN BY OPERATING PROFIT ?

Answer Posted / yetandra

The profit earned from a firm's normal core business
operations. This value does not include any profit earned
from the firm's investments (such as earnings from firms in
which the company has partial interest) and the effects of
interest and taxes.

Also known as "earnings before interest and tax" (EBIT).

Calculated as:

Operating Profit = operating revenue - operating expenses

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