Calculating Operating profit :
EBIT definition: Earnings before interest and taxes (EBIT) is operating profit (operating income).
EBIT formula:
(EBIT) Operating income = Revenue – Operating expenses (OPEX)
EBIT = Operating Revenue – Operating Expenses + Non-operating Income
Earnings before interest and tax = Sales revenue – Cost of goods sold – Operating expenses (all expenses except interest and taxes)
Operating Expenses (OPEX) are costs for running day-to-day operations.
EBIT CALCULATOR: