Margine Operativo Netto - MON

10:12 Nov 30, 2012

Italian to English translations [PRO]
Bus/Financial - Accounting / cash flow statement

Italian term or phrase: Margine Operativo Netto - MON

I am translating a cash flow statement and this is the first time I post a question, so hope not to infringe any rules.
I didn't really understand if MON corresponds to the Risultato Operativo Netto, which in EN is EBIT.
Let's assume for a moment that MON means EBIT.
The reason why I am asking this is because this is what I have:

Margine Operativo Netto (MON) (6.748.610)
Ammortamenti (depreciation and amortization) 1.437.315
Gross self-financing (5.311.295)

As you can see, gross self-financing is the result of MON - amortization and depreciation. Now, EBIT means earnings before interest and taxes (as per Kudoz Glossary), so it does not include amortization and depreciation, as a consequequence the latter could not be deducted from EBIT. So according to the cash flow statement I am translating, MON seems to correspond to EBITDA (Earnings before interest, taxes depreciation and amortization).
I hope this is quite clear, as this is not really my field. The question is:
How is it possible that amortization and depreciation are subtracted from something which does not include them? Maybe is the cash flow statement wrong?

Floyd Rhapsody KudoZ activity Questions: 3 (2 open) Answers: 0 Italy
Local time: 03:18

Summary of answers provided

EBIT

Alison Kennedy

Operating profit

James (Jim) Davis

Discussion entries: 2

Answers

5 mins confidence:

EBIT

Explanation:
Margine operativo lordo - EBITDA

Alison

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Note added at 8 mins (2012-11-30 10:21:36 GMT)
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Cash flow statements aren't usually wrong. You don't have to understand how they got there (it isn't always a +/- operation). I have just translated financial statement to be pushlished on the web and MON is EBIT - Ack

Alison Kennedy
Italy
Local time: 03:18
Specializes in field
Native speaker of:

English
PRO pts in category: 157

2 hrs confidence:

Operating profit

Explanation:
Of course you can just call it operating profit if you want, which is precisely the same thing.
http://www.investopedia.com/terms/o/operating_profit.asp#axz...

Definition of 'Operating Profit'
The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's investments (such as earnings from firms in which the company has partial interest) and the effects of interest and taxes.

Also known as "earnings before interest and tax" (EBIT).

Read more: http://www.investopedia.com/terms/o/operating_profit.asp#ixz...

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Note added at 8 hrs (2012-11-30 18:18:38 GMT)
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This google actually surprised me Phil. After translating hundreds (maybe thousands) of income statments I supposed I thought the answer needed no explanation. Margine operativo lordo is gross profit and netto is operating profit.

https://www.google.it/search?source=ig&rlz=&q=ebit "margine ...

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Note added at 8 hrs (2012-11-30 18:41:02 GMT)
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Net operating margin is a percentage, net operating income as a percentage of sales. Operating profit is to quote investopedia "The profit earned from a firm's normal core business operations." Just as MON is profit from the "gestione caratteristica". Operating income and operating profit are synonyms. "net operating income" is really genuine EBIT which is after non-operating income.
"Alison has already said EBIT" EBIT is one answer this is another alternative, are alternative answers unhelpful? Technically EBIT is only equal to MON if there is no non-operating income.
Said all that, in practice you can see what is happening from the way the income statement is laid out, and there tends to be considerable variation because accounting standards (UK and US) don't give rules for this type of thing because they are subtotals,

James (Jim) Davis
Seychelles
Local time: 05:18
Specializes in field
Native speaker of:

English
PRO pts in category: 1431

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