Final answer:
Operating income and EBIT are similar but not identical. Operating income is derived from core business operations, while EBIT includes non-operating income, making it a broader measure of profitability.
Step-by-step explanation:
Operating income and EBIT (Earnings Before Interest and Taxes) are terms often used interchangeably, but they are not strictly the same thing. Operating income refers to the profit realized from a business's core operations and is calculated by subtracting operating expenses from gross profit. EBIT, on the other hand, includes non-operating income such as income from investments, making it a broader measure of a company's profitability. In some cases, a company's operating income can be the same as its EBIT if there are no non-operating incomes or expenses. However, this is not always the case.