Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...
Return on investment (ROI) measures overall investment success; operating income ROI focuses on core business performance. Calculate operating income ROI by dividing operating income by total ...
Net operating income (NOI) is a calculation commonly used for real estate investments that takes the revenues and subtracts operating expenses to determine the cash flow of the investment. Net ...
Business owners compare the ratio of operating income to net sales when determining their profit margins on products and services sold. You can find operating income and net sales listed on your ...
On financial statements, the terms profit and income are interchangeable. Gross profit, or income, and operating income, or profit, are very closely related, but distinct financial measurements. A ...
Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. Dr. JeFreda R. Brown is a financial consultant, ...
EBIT measures a company's profitability by subtracting costs and expenses from total revenue. Comparing EBIT over time or against competitors reveals growth and operational efficiency. Only compare ...
Most investors are familiar with calculating return on investment, or ROI. It's one of the most-common metrics used to determine an investment's success or failure. You may not, however, be as ...