Earnings Before Interest and Taxes (EBIT)

Earnings Before Interest and Taxes (EBIT)

What is Earnings Before Interest and Taxes (EBIT)?

EBIT is a measure of a company's operating performance, calculated by subtracting operating expenses from revenue and excluding interest and taxes.

Earnings Before Interest and Taxes (EBIT) is a financial metric that calculates a company's profitability by excluding interest and taxes from its operating income. EBIT provides insight into the operational efficiency of a business, independent of its tax structure and financing decisions. It allows investors and analysts to compare profitability across companies and industries without the distortions caused by differing capital structures and tax rates. EBIT is a key indicator of a company's core profitability and operational performance, serving as a benchmark for operational decisions, financial planning, and investment analysis.

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