Operating profit, also known as earnings before taxes (EBT), is a key measure in finance that reflects a company's financial performance before tax expenses are taken into account. It is calculated by subtracting depreciation, operating costs, and other expenses from the company's revenue. Essentially, it shows how much profit a company has generated from its core business operations. This metric is important for investors and analysts as it provides insight into a company's profitability and financial health. Understanding operating profit is essential in making informed investment decisions and evaluating a company's potential for growth.
