Difference between revisions of "Operating income"
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Operating income]]. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes). | :[[Operating income]]. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes). | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Operating income]]. Earnings generated from the company's primary ongoing operations; the company's earnings before interest and taxes. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 13:05, 15 July 2020
Operating income (commonly known as EBIT; hereinafter, EBIT) is earnings from operations before interest and taxes. The positive EBIT is called operating profit; the negative EBIT is called operating loss.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Operating income. Earnings from operations before interest and taxes (i.e., EBIT).
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Operating income. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes).
According to Managerial Accounting by Braun, Tietz (5th edition),
- Operating income. Earnings generated from the company's primary ongoing operations; the company's earnings before interest and taxes.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
