Are Operating Income and EBIT the same?
I am taking L1. It looks like to me there are the same. But if the same, why there are 2 different terminologies?
Operating income = Sales – COGS – SG&A – Amortization – Depreciation
EBIT = Net income + Interet + Tax
Are they the same? Thanks!
January 18th, 2009 in
Question Posted by fiona
I think they are basically the same. But if there is one time gain or loss of assets (not due to operations), they will be different. Your equations are correct. If you refer to a typical income statement, you will see they are different due to the non-operating gain or loss by applying the equations. Hope that helps!