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Operating Income
In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1]
EBIT = Operating Revenue – Operating Expenses (OPEX) + Non-operating Income
Operating Income = Operating Revenue – Operating Expenses[2]
Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit.[3] This is true if the firm has no non-operating income.
A professional investor contemplating a change to the capital structure of a firm (e.g., through a leveraged buyout) first evaluates a firm's fundamental earnings potential (reflected by EBITDA and EBIT), and then determines the optimal use of debt vs. equity.
To calculate EBIT, expenses (e.g., the cost of goods sold, selling and administrative expenses) are subtracted from revenues.[4] Profit is later obtained by subtracting interest and taxes from the result.
Statement of Income — Example(figures in millions) Operating Revenues Net Sales $20,438 Operating Expenses Cost of goods sold $7,943 Selling, general and administrative expenses $8,172 Depreciation and amortization $960 Other expenses $138 Total operating expenses $17,213 Operating income $3,225 Nonoperating income $130 Earnings before interest and income taxes (EBIT) $3,355 Net interest expense $145 Earnings before income taxes $3,210 Income taxes $1,027 Net income $2,183
(Table info source: Bodie, Z., Kane, A. and Marcus, A. J. Essentials of Investments, McGraw Hill Irwin, 2004, p. 452.)
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How do i go bout geting a free laywer to sue the durham police department for drug raids and nothing is found?they have been in my house 4 or 5 times seems like every 4 months or so and breaking down my door tearing up m
They need a warrant to get into your house...if they never showed you one...you ...
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Yes if you file they cannot sue you to the knowledge I know. My brother is in re...
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First, make sure your mother's intention to "disinherit" you sister has been acc...
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