Operating Income
Posted: 02 February 2013 11:07 AM   [ Ignore ]
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Dear Forum,

I am struggling with operating income in Compustat. First I used “oibdps” (operating income before depreciation) for the operating income of a Segment. However, there are almost all values missing. Can I use “ibs” (income before extraordinary items) as operating income or are there better alternatives? How about “ni”?

Thanks,
Chris

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Posted: 02 February 2013 11:46 AM   [ Ignore ]   [ # 1 ]
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hi Chris,

“Ibs” may have a lot of missing observations as well. The segment data just happens to be rather dirty. What I would recommend is to do both: repeat the analyses for the different measures, and chose the best one in terms of data availability, desirability (how well it matches the construct of operating income). Report the ‘best’ measure in the main tables, and include the robustness using the other variables in the footnotes/sensitivity analyses.

best regards,

Joost

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