Total earnings before provisions are deducted. This measures a company's performance and is often used in preference to net profit as it excludes the effects of borrowings and tax benefits and adjustments.
Earnings (profits) before interest and tax. A measure of profit that seeks to ignore the financing structure adopted by the owners of a business but make allowance for the need to replace and or upgrade fixed assets by including depreciation charges.EBIT = Operating Income +(-) Other Income (Loss) +(-) Extraordinary Income (Loss)
Net income before income tax expense and interest expense. This is a popular measure for comparing the earning power of companies, because it eliminates the impact of capital structure and effective tax rates, two non-operating factors.
A measure of financial performance. EBIT consists of a companyâ€™s revenues minus its cost of doing business. It is a measure of a companyâ€™s operating profit before interest on debt and income taxes on earnings are deducted.
A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and non-operating profit before the deduction of interest and income taxes.
Earnings before interest and taxes (EBIT), also known as operating income and operating profit, is a term used to describe a company's earnings. A professional investor contemplating a change to the capital structure of a firm (e.g., through a leveraged buyout) first evaluates a firm's fundamental earnings potential (reflected by EBITDA and EBIT), and then determines the optimal use of debt vs. equity. To calculate EBIT, basic expenses (e.g., the cost of goods sold, selling and administrative expenses) are subtracted from revenues.