Underlying Profit
Content
Definition
Underlying Profit is the profit of a company excluding any earnings that come from outside the usual business activities.
Usage and Context
Underlying profit includes earnings only from the company’s main business activities.
Frequently asked questions
- What is the underlying profit? Underlying profit excludes one-time or unusual items, showing the core earnings of a business.
- What is underlying operating margin? Underlying operating margin is a profitability measure that excludes one-time or non-operational items, providing a clearer view of a company`s core performance.
- What is the underlying EBIT? Underlying EBIT refers to Earnings Before Interest and Taxes, adjusted for one-time or unusual items to show a clearer picture of a company’s operating performance.
Benefits
Underlying profit gives a clearer picture of core business performance, excluding non-core activities.
Conclusion
Underlying profit offers a clearer view of core business performance by excluding non-core earnings.
