Underlying profit is a termed that can be defined as the description of the reflection of the actual profit of a company. The underlying profit is not the actual accounting profit of the company that is recorded on the financial statements and the other business documents of the company and those mandatory documents that define a preset rules that must be followed by the individuals as well as the shareholders. The number or the amount of the underlying profit is issued by the company to show the exact figures of the profits that a company is actually generating from all of its business operations. The underlying profit defined the accurate profit figures of a company and may exclude onetime charges and or other inconsistent events.
The calculation of underlying profit varies from one company to the other. However the calculation always begin with the profit in which further calculations or further changes are made according to the rules and regulations and the portfolio of the specific company. However in recent years a lot of emphasis is placed on the need of uniform principals or calculations of the underlying profit so that the underlying profits of two companies can be compared or exchanged.