Operating profit (EBIT)

Operating profit is what remains of revenue after paying for everything it takes to run the business: materials, staff, rent, marketing, research and depreciation. Interest and taxes are not yet deducted, which makes it a good measure of how well the business itself performs.

It is often called EBIT, short for “earnings before interest and taxes”. Companies sometimes publish an adjusted or “recurring” version that leaves out one-off items such as restructuring costs; the breakdowns always say which version they use.