in computation of operating profit whether depreciation should be deducted or not?
if depreciation is not deductable, then PBDITA can be considered as a measure of operating profit.
thanks in advance.
I'm confused
Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization
its a standard definition so it should be dedeucted
if you want to compare different measures then there is nothing stopping you to do that.
it should be deducted, however if you are willing to measure the operating cash, then it is the only case when it should not because it is a noncash expense
'Operating profit' is the operating income from revenues minus cost of goods sold and operational expenses, excluding amortisation and depreciation .
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