- Operating Earnings
- Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue.
Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before interest and taxes). Analysts typically use operating earnings to judge the quality of a company's core business and forward prospects since it shows the relationship between sales, volume and costs.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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Operating Profit — ⇡ Earnings before Interest and Tax (EBIT) … Lexikon der Economics