Operating profit (EBIT)
Operating profit (EBIT, Earnings Before Interest and Taxes) is the result of a company's core operations, before financial items and tax. It shows whether the business itself makes money.
The figures behind the term
Operating profit (EBIT): By legal form
| Legal form | Lower quartile | Median | Upper quartile | Companies |
|---|---|---|---|---|
| All active companies | -DKK 7,310 | DKK 93,828 | DKK 2,419,617 | 10,746 |
| ApS | -DKK 7,374 | DKK 33,354 | DKK 232,197 | 6,485 |
| A/S | DKK 20,000 | DKK 6,125,086 | DKK 35,568,500 | 2,954 |
Source: companydata.dk, CVR and annual reports, updated 28 October 2026
Operating profit is calculated as revenue (or gross profit) minus operating costs such as staff, administration, and depreciation, but before interest income, interest expenses, and tax. It is therefore unaffected by how the company is financed.
Why use operating profit?
Because financing costs and tax are excluded, operating profit is well suited for comparing earning power across companies. It feeds into key figures such as profit margin and return on assets.
Frequently asked questions
What is the difference between operating profit and profit for the year?
Operating profit (EBIT) is the result of the operations themselves before financial items and tax. Profit for the year is what remains once interest and tax are also deducted.
Are operating profit and EBIT the same?
Yes. EBIT stands for Earnings Before Interest and Taxes and is the English term for the Danish driftsresultat, also called result of primary operations.
Why is operating profit used for comparison?
Because it shows the earnings of the operations regardless of how the company is financed and what tax it pays. That makes companies with different debt levels comparable.
Related terms
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a company's result before interest, tax, depreciation, and write-downs, a measure of operating earnings before accounting and financial items affect the picture.
Profit margin (overskudsgrad)
The profit margin (overskudsgrad) shows how large a share of revenue ends up as operating profit. It is calculated as operating profit divided by net revenue, multiplied by 100.
Return on assets (afkastningsgrad)
Return on assets (afkastningsgrad) shows how much operating profit a company generates per krone tied up in assets. It is calculated as operating profit divided by the balance sheet total, multiplied by 100.
Net result (årets resultat)
The net result (årets resultat) is the bottom line of the financial statements: the company's total profit or loss for the fiscal year after all costs, financial items, and tax have been deducted.