NOI = EBIT = OPERATING INCOME?

CFA Level II
#1

?

#2

Same thing.

#3

EBIT = operating profit EBITDA = operating income

#4

ok so NOI = Operating profit, right?

#5

NOI is for real estate - Net Operating Income and I think it is EBITDA*(1-tax) though it has always been given in the questions that I have seen so I’m not sure if that formula is correct

#6

Great points guys, I def gotta review this.

#7

Anything for Swanny :slight_smile:

#8

NOI = EBITDA = (net) operating income … neither taxes nor depreciation are deducted… NOPAT = net operating profit after taxes = EBIT (1- t)

#9

net always refers to below the line (after taxes)

#10

agree with deep… natty …are you sure about this?? seems right…but need to confirm!

#11

I don’t have my Level I books, so I had to google… from what I’m finding you have to deduct property taxes, but not income taxes… below are some of the sources I just found: http://www.invest-2win.com/noi.html http://www.investorwords.com/3254/Net_Operating_Income.html http://www.rentalsoftware.com/net_operating_income.htm http://www.smartcapitalist.com/blog_2.shtml anyone has other sources that are more reliable?

#12

nattyg Wrote: ------------------------------------------------------- > I don’t have my Level I books, so I had to > google… from what I’m finding you have to deduct > property taxes, but not income taxes… below are > some of the sources I just found: I think I remember that from level I.

#13

That’s right. NOI is before you deduct your income tax. So NOI = EBIT - property tax.

#14

I guess that is where the ‘net’ is from EBIT - property tax and not income tax. I learned something new today.