Is there a difference between net operating income and EBITDA? I keep seeing net operating income in real estate companies but not in other industries?

Hey there!

Operating income is the actual profit for a company’s operating activities. This is the amount of money a company makes from its core operations. EBITDA is a slight variation that metric used to show a company’s true profit from operations with respect to cash. It’s used gauge a company’s ability to service debt among other things.

Esstentially, EBITDA is similar to net income with some factors of non-operating expenses added back into the value.