EBIT vs. Operating Income
hi,
i've got one question regarding EBIT vs. operating income. As I've read is the EBIT margin a good summary measure of the operating performance of a company. But as I've learned, EBIT also contains "other income/losses". Wouldn't be the "operating income margin" be a better measure to assess the companies operating performance?
thanks & cheers!
In general, both are used interchangeably.
Thank you!
I think your definitions are "technically" true, but many professionals and professors actually refer EBIT to only operating related income.
Thank you! So then, I will just assume that both terms are substitutes for the same meaning!
Usually people use Adjusted EBIT. So that adjusts away non-operating and (and some) non-cash items.
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