Thanks
EBIT and Operating income are actually used interchangeably. Interest and Taxes are non-operating expenses and used to get a better feel for earnings before these items take place. I Think the commenter below had the right idea just not the right explanation. Basically your income less cost of goods sold, depreciation, SG&A etc.
EBIT includes Earnings from non-operating sources, e.g. gain/loss on the sale of equipment, income / expenses from discontinued operations, etc.
Almost...also non-operating income.
What is the difference between these two terms? Isn't EBIT = Operating Income - Non-operating expenses.
Thanks
