is operating income EBIT? sometimes I see as: Sale-COGS-S&A-R&D which is correct? Thanks.
I’m pretty sure NOI = NOP = EBIT; and NOPAT = EBIT(1-t) You use this formula in EVA = NOPAT - $WACC The other place you see it, is for the income property where MV = NOI/(r-g). Here though, it’s more net rental income, then something income sheet related. I suppose look at the context of the question to determine the use. The other formula you gave would be missing Depr and amort expense to get to EBIT; however, I don’t recall seeing that formula used in reference to anything specific. If you find out more, post it here.
ebit is pre-tax operating income. it is basically sales -cogs -r&d -SG&A -depreciation&amortization. note you left out D&A. For the purposes of CFA exam the equation holds, but may include other things in the real world (and possibly on the exam). unrelated rant: mods on this forum stop nuking my posts or at least give me a valid reason why they violate rules.