Operating Income Minus Interest Expense

And earnings before interest taxes depreciation and amortization more commonly referred to as ebitda looking at both provides a more complete picture of a company s financial performance and.

Operating income minus interest expense. Where operating expenses are cost of selling general and administrative expenses. Operating income is calculated as. Operating expenses is discussed in detail below. Image by sabrina jiang.

Operating income shows how much profit a company generates from its operations alone without interest or tax expenses. We can see that operating income is the result of gross income or gross margin on apple s income statement of 20 2 billion minus operating expenses of 8 6 billion. Negative operating income is an operating loss which means that cost of goods sold. Gross profit is sales minus cost of goods sold.

The cash operating profit before adjustments of. Two of the main ones are operating income which is profit minus operating expenses. As revenue minus expenses excluding. Operating income also be known as ebit earnings before interest and taxes as well as can also be referred as ebitda i e.