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Can I say Operating profit is Profit before tax?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Can I say Operating profit is Profit before tax?

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
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  • July 25, 2017 at 7:16 pm #398645
    sunny20
    Member
    • Topics: 33
    • Replies: 27
    • ☆☆

    I’m confused by the term operating profit and profit before tax. Can I say operating profit is profit before tax?

    July 25, 2017 at 8:31 pm #398652
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    No, not quite

    Operating profit is alternatively called EBIT ie earnings before interest and tax

    So investment income and loan interest are not included in arriving at the figure earnings before interest and tax

    OK?

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