EBIT, or Earnings Before Interest and Taxes, is used to measure a company’s profitability without taking into account financing activities such as interest payments and taxation. It essentially shows how successful the business is at generating profits from its core operations.
Net Operating Income (NOI) measures the performance of a business before any non-operating income or expenses are taken into consideration – such as taxes, depreciation, and interest expenses. This measure of profit gives investors an idea of how much money would be left after all operating costs are paid, and helps them to understand how efficiently the business is being managed.