operating profit

USAGE SUMMARY

"operating profit" is correct and usable in written English.
It is a noun that refers to the money a business makes after subtracting operating expenses like wages, rent and taxes from their total income. For example: Our operating profit this quarter was significantly higher than expected.

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Operating profit: up 10%.

The Guardian

Core operating profit fell 12% to £1.77bn.

The Guardian - Business

Operating profit was actually slightly lower.

The New York Times

International operating profit jumped 27.6 percent.

The New York Times

Operating profit was up 22 percent.

The New York Times - Tech

Operating profit was 56 percent higher.

The New York Times

Operating profit was £403 million ($611 million).

The New York Times

Operating profit margins did not.

The New York Times

Operating profit fell 49percentt.

The New York Times

Operating profit rose 2% to $344m.

The Guardian - Business

Operating profit rose 12% to £18.7m.

The Guardian

Expert writing Tips

Best practice

When reporting "operating profit", always specify the period (e.g. quarterly, annually) to provide context.

Common error

Avoid using "operating profit" interchangeably with net profit. "Operating profit" excludes interest and taxes, while net profit includes them.

Linguistic Context

The phrase "operating profit" functions as a noun phrase that names a specific type of financial metric. As Ludwig AI confirms, it describes the profit earned from a company's core business activities before accounting for interest and taxes. Examples from Ludwig illustrate its use in reporting financial results.

Expression frequency: Very common

Frequent in

News & Media

61%

Formal & Business

37%

Science

2%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

"Operating profit" is a frequently used noun phrase in financial contexts to describe the profit a business generates from its core operations before interest and taxes. Ludwig AI confirms it's correct and usable in written English. Grammatically sound and very common across various authoritative sources like The New York Times and The Guardian, it's primarily employed in news and media, as well as formal business settings. Understanding its calculation and differentiation from net profit is crucial. Related phrases include "operating income" and "earnings before interest and taxes".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

operating income

A synonym of operating profit.

profit from operations

Rephrases "operating profit" to emphasize the activity generating the profit.

income from operations

Synonymous term used in financial reporting.

net operating profit

Emphasizes the profit after deducting all operating expenses.

earnings before interest and taxes

Focuses on what the operating profit excludes: interest and taxes.

underlying profit

Highlights profit before exceptional items.

core earnings

Focuses on the main source of earnings.

pre-tax profit

Profit before taxes are deducted.

trading profit

Profit made from trading activities.

business profit

General term referring to profits made by a business.

FAQs

What does "operating profit" mean?

"Operating profit" refers to the profit a business makes from its core operations, excluding interest and taxes.

How is "operating profit" calculated?

It's calculated by subtracting operating expenses (like wages, rent, and depreciation) from revenue.

What's the difference between "operating profit" and "net profit"?

"Operating profit" excludes interest and taxes, while "net profit" accounts for all revenues and expenses, including interest, taxes, and other non-operating items.

What are some synonyms for "operating profit"?

Synonyms include "operating income", earnings before interest and taxes (EBIT), and "profit from operations".