The major differences between EBIT and operating income are as follows −
It calculates company’s profitability.
It is used to understand the company’s profit making capacity.
It is not recognised by GAAP.
The adjustments are made.
The non-operated expenses are also considered.
It is not reported in financial statements.
It calculates profit gained through operations.
It is used to know company’s capacity to convert their revenues into profit.
It is recognised by GAAP.
There is no need for adjustments.
Only operating expenses are considered.
It is reported in the financial statements.