Earnings Before Interest and Taxes (EBIT)
Earnings Before Interest and Taxes. A measure of a company’s earning power from ongoing operations, equal to earnings before deduction of interest payments and income taxes. EBIT excludes income and expenditure from unusual, non-recurring or discontinued activities. In the case of a company with minimal depreciation and amortization activities, EBIT is watched closely by creditors, since it represents the amount of cash that such a company will be able to use to pay off creditors. Also called operating profit.
Variables: turnover, costs of ongoing operations minus financial income, expenditures and taxes
Calculation: Turnover - costs descibed above
Measured in: Value ($/€)
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