Operating income

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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).

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