Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before interest and taxes). Analysts typically use operating earnings to judge the quality of a company's core business and forward prospects since it shows the relationship between sales, volume and costs.
Investment dictionary. Academic. 2012.
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Earnings Before Interest & Tax - EBIT — An indicator of a company s profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as operating earnings , operating profit and operating income , as you can re arrange the formula to be… … Investment dictionary
operating income — / ɒpəreɪtɪŋ ˌɪnkʌm/, operating profit / ɒpəreɪtɪŋ ˌprɒfɪt/ noun the profit made by a company in its usual business. Also called operating earnings … Dictionary of banking and finance
Earnings before interest, taxes, depreciation and amortization — (EBITDA) is a non GAAP metric that can be used to evaluate a company s profitability.::EBITDA = Operating Revenue – Operating Expenses + Other RevenueIts name comes from the fact that Operating Expenses do not include interest, taxes, or… … Wikipedia
earnings basis — ˌearnings ˈbasis noun [singular] FINANCE used to discuss a company s performance based on its profits, rather than other measures of performance: • While not cheap on an earnings basis, the stock s $2 a share in operating cash flow makes it a… … Financial and business terms
Operating income — Operating revenues less operating expenses. Excludes items of other revenue and expense, such as equity in earnings of unconsolidated affiliates, dividends, interest income and expense, income taxes, extraordinary items, and cumulative effects… … Energy terms
Earnings before Interest and Tax (EBIT) — Operating Income, Operating Profit; Gewinn (Ergebnis der gewöhnlichen Geschäftstätigkeit) vor Ertragsteuern und Zinsen (Finanzergebnis). EBIT ist eine im angelsächsischen Raum gebräuchliche Kennzahl, die eine von der Finanzstruktur des… … Lexikon der Economics
Operating cash flow — Earnings before depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements. The New York Times Financial Glossary * * * The change in a company s net cash position… … Financial and business terms
operating cash flow — earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. Bloomberg Financial Dictionary * * * The change in a company s net cash position during a… … Financial and business terms
Operating Income — ⇡ Earnings before Interest and Tax (EBIT) … Lexikon der Economics
Operating Profit — ⇡ Earnings before Interest and Tax (EBIT) … Lexikon der Economics