Tuesday, 19 February 2013

EBIT (Earnings Before Interest & Tax)

An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income", as you can re-arrange the formula to be calculated as follows:


EBIT =  Revenue - COGS- Operating  Expenses - Depreciation & Amortization

Also known as Profit Before Interest & Taxes (PBIT), and equals Net Income with interest and taxes added back to it.



http://www.investopedia.com

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