Just been through the AM mock which I thought was pretty straight forward, got 75%, nothing in it where I stopped and thought, “Never seen that in the sylabus”. Anyway got tripped up on Q13 - I thought operating income was just EBIT but in the answers they don’t include depreciation. I’m sure I’ve seen some questions where they use EBIT and Operating Income synonymously. What am I missing here??? Cheers


Hey I just posted this same question…anyone???,1156375

this q has come up with a lot of people, and has been asked a couple times, that’s why no response I think it’s just an errata b/c S - cogs = gross profit gross profit - SGA and r&d = pro forma ebitda ebitda - depreciation = EBIT and I’m pretty sure all over corporate finance ebit and operating income are used synomysly (sp)

SOrry should have used the search which I normally do but most not have with this. Thanks alot!

The definition in the CFAI fixed income book does not include depreciation expense in Operating Income

where is there a definition of operating income that doesnt include depreciation? is it in the bond ratings section? where they develop all those funny FFO measures?