# Operating Income (EBIT)

*Accounting & Reporting — Finicade finance glossary*

Operating income is profit from core operations, before interest and tax. It answers whether the business itself works, independent of how it's financed. It sits between gross profit and net income, and the gap between it and EBITDA is depreciation and amortisation — which matters enormously for capital-intensive businesses where that charge represents real, recurring replacement spending.

**Also known as:** EBIT, operating profit, earnings before interest and tax

**Related terms:** [Operating Margin](https://finicade.com/glossary/operating-margin), [EBITDA](https://finicade.com/glossary/ebitda), [Net Income](https://finicade.com/glossary/net-income), [Interest Coverage Ratio](https://finicade.com/glossary/interest-coverage-ratio), [Return on Invested Capital](https://finicade.com/glossary/return-on-invested-capital)

**Taught in:** Charter Climb — The Income Statement

Source: https://finicade.com/glossary/operating-income