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 ?
With today's shrunken net operating incomes, owners won't want to make property improvements until cash flow recovers.
These higher are pulling down net operating income and eroding the market value of properties of all kinds.
Real estate investors maintain a keen focus on net operating income -- i.e., the net income available before debt service -- when making their purchase, refinance or investment decisions.