UK EBIT versus operating profit

[Riskreep]

Little confused...

I keep seeing EBIT and operating profit discussed as different meanings.

I've always understood them to both be the same.

Gross profit (profit after direct expenses), operating profit (profit after overheads) then net profit (profit after interest and tax is deducted).

Am i correct or am I misinterpreting something here?

 

[bradgilliatt]

Hello: often both calcs will lead to the same numer in smaller businesses. Ebit or ebitda includes extraordinary or "one time items" such as, investments in another business (items not usually experienced in the course of operating the business - e.g. microsoft sells one of its buildings is factored into ebit but since its not primary for them to sell real estate it isnt included in operating income)