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!
| +273 | Earliest you can get fired | 58 | 1d |
| +258 | Investment Banking is Divine | 40 | 1d |
| +218 | Another $115bn Mega deal for these banks. Congrats! | 45 | 1d |
| +215 | US 2027 SA IB worried about background check | 53 | 1d |
| +206 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 41 | 2d |
| +133 | Is UBS really that bad? | 39 | 46m |
| +40 | Is Houston SA 28 recruiting already over? | 34 | 19h |
| +27 | FIG Pigeonholes you - is it true? | 8 | 1d |
| +27 | 2026-27 IB Energy Top Banks | 8 | 1d |
| +25 | How do you manage nerves in IB technical interviews? | 7 | 2h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
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.
Non excepturi quibusdam et recusandae. Nostrum sunt et mollitia eaque debitis.
Enim in ipsa ut. Deleniti asperiores quam saepe dolor.
Earum inventore architecto ea vero fugiat possimus aut. Autem doloremque qui rerum est quia.
Aliquid ut nam sed quo omnis nostrum. Quam dignissimos dolore veritatis quo dolorum dolorem et. Incidunt sit corporis sequi aut. Minima qui esse rem qui magni.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...