Operating Income Template
Operating Income Template
This operating income template shows you how to calculate operating income using line items from the income statement.
This is what the operating income template looks like:
Download the Free Template
Enter your name and email in the form below and download the free template now!
Operating income, also referred to as Earnings Before Interest & Taxes (EBIT), is the amount of revenue left after deducting the operational direct and indirect costs from sales revenue. This can also be computed using gross income less depreciation, amortization, and operating expenses not directly attributable to the production of goods. Interest expense, interest income, and other non-operational revenue sources are not considered in computing for operating income.
There are three formulas to calculate income from operations:
1. Operating income = Total Revenue – Direct Costs – Indirect Costs
2. Operating income = Gross Profit – Operating expenses – Depreciation – Amortization
3. Operating income = Net Earnings + Interest Expense + Taxes
Another way to calculate income from operations is to start at the bottom of the income statement at Net Earnings and then add back interest expense and taxes. This is a common method used by an analyst to calculate EBIT, which can then be used for valuation in the EV/EBIT ratio.
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.
Excel Tutorial
To master the art of Excel, check out CFI’s Excel Crash Course, which teaches you how to become an Excel power user. Learn the most important formulas, functions, and shortcuts to become confident in your financial analysis.
Launch CFI’s Excel Crash Course now to take your career to the next level and move up the ladder!
