Operating Profit

Operating Profit is the Gross Profit minus all Operating Expenses. It represents the surplus generated by a company's business operations.

Therefore Operating Profit = Total Revenue – Cost of production and sales of goods or services sold.

It is also known as earnings before interest and tax (EBIT), profit before interest and taxes (PBIT), or operating profit before interest and tax (OPBIT).

What to do if you need more help

If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.

We hope you found this information useful.

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