Difference between revisions of "Operating income"
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| − | [[Operating income]] is [[earnings before interest and taxes|earnings from operations before interest and taxes]] | + | [[Operating income]] (commonly known as [[EBIT]]; hereinafter, ''EBIT'') is [[earnings before interest and taxes|earnings from operations before interest and taxes]]. The positive ''EBIT'' is called [[operating profit]]; the negative ''EBIT'' is called [[operating loss]]. |
Revision as of 03:06, 8 November 2019
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).
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
