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).
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According to [[Managerial Accounting by Braun, Tietz (5th edition)]],
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:[[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

Related lectures