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Operating profit

Operating profit, also known as operating income or earnings before interest and taxes (EBIT), is the profit earned by a company from its core business operations. It is calculated by subtracting the company's operating expenses from its revenue.Operating profit is an important metric for a company because it provides a measure of the company's profitability before considering the effects of financing and tax. It is a useful indicator of the company's operational performance and can be used to compare the performance of different companies in the same industry.

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