Operating Profit and Earnings Before Interest and Tax are different things.

Amanda Barbosa

2 years ago

Question 5 of 18

Career development

Operating Profit and Earnings Before Interest and Tax are different things.

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Retail Sales: Fundamental Formulas You Should Know

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18 questions (9 min)

Why?

Operating Profit is used to measure profit made from operations before deducting taxes and interest charges. It is also known as Earnings Before Interest and Tax (EBIT).

Take a look at the video below by the Corporate Finance Institute about EBIT and check the link below if you want to read more about it. https://www.youtube.com/watch?v=7Gs3iwpnWSc

Source: "Operating Income" on corporatefinanceinstitute.com

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