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"operating income" vs "operating profit"

Both 'operating income' and 'operating profit' are correct terminologies used in financial reporting to describe the profit generated from a company's core business operations. They are interchangeable and can be used depending on personal preference or specific industry standards.

Last Updated: March 30, 2024

operating income

This phrase is correct and commonly used in financial reporting to refer to the profit earned from a company's primary business activities.

It is used to indicate the earnings a company makes from its core operations before interest and taxes are deducted.

Alternatives:

  • operating profit
  • earnings before interest and taxes (EBIT)
  • gross profit
  • net income
  • profit from operations

operating profit

This phrase is also correct and commonly used in financial reporting to describe the profit generated from a company's main business activities.

It represents the profit a company makes from its core operations before interest and taxes are taken into account.

Alternatives:

  • operating income
  • earnings before interest and taxes (EBIT)
  • gross profit
  • net income
  • profit from operations

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