EBIT – adjusted (SM.EBIT_Adj)

EBIT – adjusted (SM.EBIT_Adj) usually excludes non-recurring items, such as restructuring, as well as recurring non-cash items, such as stock options and capitalized R&D expense, from EBIT – as reported. The list of exclusions is based on sell-side analyst best practice and can vary significantly from one company to another, even within the same industry. It is generally shown as adjusted EBIT as per Consensus model (EBIT (Consensus Model) (SE.EBIT_Adj)).

In the absence of Consensus Adjusted EBIT, It is calculated as “Gross profit (SM.Gross_Profit) – (total operating expense – adjusted (SM.Opex_Adj)) + Stock based compensation expense (SM.TotalSBC_Exp)”.