Glossary

Glossary

Glossary

Earnings Before Interest and Taxes (EBIT)

Earnings Before Interest and Taxes (EBIT)

Definition

The profit a company makes from its operations before deducting interest and taxes. It is calculated by subtracting operating expenses from revenue. EBIT is important for comparing profitability across companies and industries because it excludes the effects of financing and tax structures.

The profit a company makes from its operations before deducting interest and taxes. It is calculated by subtracting operating expenses from revenue. EBIT is important for comparing profitability across companies and industries because it excludes the effects of financing and tax structures.

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