Are the EBIT and operating profit the same thing?

Anonymous A asked on Jun 18, 2019 - 2 answers

If not, what's the differences? Thanks!

2 answers

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Daniel replied on Jun 18, 2019
Imperial College PhD, Rolls-Royce Project Engineer, RWTH Aachen Mechanical Engineer and Business Administrator, Software Engineer

Hi,
it's the same when there is no other income from sources that are not directly related to the main business, such as for instance from selling a company car. In the end, it depends on the company how it defines these terms, so I suggest always ask if you are unsure.

Good luck!
Daniel

Francesco replied on Jun 19, 2019
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Hi Anonymous,

operating profit does not include by definition revenues and costs which are related to non-operating activities. Whenever there are revenues or costs coming from non-operating activities (everything which is not related to the typical activity of the company), the two metrics will be different, otherwise they will be equivalent.

Best,

Francesco

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