Business Pitch Dictionary by pitch.dog
Revenue, costs & profit · Core

Operating profit

Also called: operating income

ELI5

Profit from operating activities before specified financing and tax items.

Used in conversation

“How are we defining operating profit in this deck?”

Pitch context

You will see “Operating profit” in financial models, budgets, board packs and investor materials when the discussion reaches revenue, costs & profit.

Why it matters: In revenue, costs & profit, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • EBITDAOperating profit follows the applicable income-statement presentation; EBITDA adds back interest, tax, depreciation and amortisation under a stated calculation.
Sources & evidence · 4

Direct term-level sources and supporting source families.