Earnings Before Interest and Tax

(redirected from Net Operating Incomes)

Earnings Before Interest and Tax

A measure of a company's ability to produce income on its operations in a given year. It is calculated as the company's revenue less its expenses (such as overhead) but not subtracting its tax liability or interest paid on debt. It is important to note that EBIT does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. EBIT represents cash available to pay off creditors in the event of liquidation and, as such, it is closely watched, especially when the company incurs little depreciation or amortization. It is also called operating profit.
References in periodicals archive ?
Based on their stable occupancy levels and net operating incomes since issuance, these loans maintain investment-grade credit assessments.
Due to the decrease in occupancy, the property's servicer reported net operating income (NOI) as of year-end (YE) 2004 declined to $31.