No. of Recommendations: 1
Wow, so many questions. I'll answer the ones I think I know, and leave the rest up to the rest of the board...

Can anybody tell me exactly how to figure out EBITDA and EBIT?
EBITDA= net profits plus interest, Taxes, Depreciation, and Amortization.

EBIT= Net profits plus Interest and Taxes.

Is EBITDA the same as Operating Income?
Not necessarily. I believe EBITDA would include investment income, which shouldn't be included in Operating Income. There may be other differences.

IS EBIT = EBITDA - Deprciation and


What is the relationship between Operating Income and Operating Cash Flow (not Cash Flow from Operations)

I belive that Operating Cash Flow and Cash Flow from Operations are the same thing. Anyway, I don't think there is any direct, simple relationship between Operating Income and Operating cash flow.

Anyway, as for what analysts use to determine cash flow, there are different ways of looking at cash flow. EBITDA is a popular, simple proxy, but other analysts prefer more complicated calculations that capture the number better. I'll leave that up to the better versed among us.


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