Operating income
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).
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
