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Ebit

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EBIT investment & finance definition
Earnings before interest and taxes is a financial calculation that subtracts cost of goods sold along with selling, general, and administrative expenses (SG&A) from revenues.

 


EBIT
Earnings before interest and taxes. This is the figure for operating income after depreciation but without allowing for debt service or what is owed to the government for taxes.

EBIT
Definition: Earnings before interest and taxes is roughly equivalent to a company's operating profit.

EBIT
Effective before interest and taxes. Also known as operating income.
Effective Interest Rates ...

EBIT is an indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. It is widely used in cross company observations and comparisons as it eliminates the effect of capital structure and taxes.

EBIT was the precursor to EBITDA, which takes the process further by removing two non-cash items from the equation (depreciation and amortization).

Definition
EBIT
Income from ordinary business activities excluding expenses such as interest and income taxes. Also called Operating profit.
RELATED TERMS ...

EBIT
EBIT (earnings before interest and taxes) is equal to gross income minus operating expenses (including depreciation) minus investment income minus income from other businesses.

EBIT
Das EBIT (Earnings Before Interest and Tax) ist eine Gewinnkennzahl und bezeichnet den Gewinn eines Unternehmens vor Zinsen und Steuern. Die Kennzahl zeigt die operative Ertragskraft einer Unternehmung unabhängig von deren Kapitalstruktur.

EBIT - some related terms:
Bond interest coverage
Coverage
Debit balance ...

EBIT A company's Earnings Before Interest and Taxes.
EDGAR (Electronic Data Gathering, Analysis, and Retrieval) An electronic system implemented by the SEC that is used by companies to transmit all documents required to be filed with the SEC ...

EBIT
Earnings before interest and taxes. EBIT is calculated by subtracting costs of sales and operating expenses from revenues.

EBIT
See: Earnings Before Interest and Taxes
EBITD
See: Earnings Before Interest, Taxes and Depreciation ...

EBIT
Earnings before interest and taxes. Key figure for the assessment of companies. This is the profit result before tax and interest expenditure.
EBITDA ...

EBIT
Earnings before interest and taxes - a financial measurement often used in valuing a company.
EBITDA
Earnings before interest, taxes, depreciation and amortization - a financial measurement used in valuing a company.

Z2 = EBIT / Total Assets
Z2 measures overall profitability of the company
Z3 = Net Sales / Total Assets
Z3 measures how quickly the company is turning their assets over. The higher this number, the better.

EBIT = Revenue - Operating expenses (OPEX) + Non-operating income
Operating income = Revenue - Operating expenses[1] ...

EBIT = Revenue - Operating Expenses
Also known as Profit Before Interest&Taxes (PBIT), and equals Net Income with interest and taxes added back to it.
Earnings Before Interest After Taxes - EBIAT ...

EBIT
A corporation's earnings before it pays bond interest and taxes.
See: Earned Before Taxes ...

EBIT is a useful profitability figure because it excludes the interest paid on loans and taxes paid to the government.
Why is this useful?

EBIT - An acronym for earnings before interest and taxes
EBITDA - An acronym for earnings before interest, taxes, depreciation and amortization.

EBIT comprises the operating profit of a company before deduction of the non-operating result and taxes. In Bayer's Annual Report EBIT is the operating result shown in the income statement.

Value/EBIT (1-t)
Value/EBITDA
Growth, Net Capital Expenditure needs, Leverage, Risk ...

Formula
EBIT
Interest Expense
Long-term Debt to Net Working Capital
Provides insight into the ability to pay long term debt from current assets after paying current liabilities.

where NOPAT = EBIT (1-tax rate)
Economic Value Added Return on Capital : EVA / Capital
Effective interest rate : Interest rate that recognizes the nominal or annual interest rate plus the extra interest gained because of compounding.

Earnings Before Interest and Taxes Abbreviated as EBIT. A measure of a firm's earning power from ongoing operations,... Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA.

Also called the Earnings Before Interest and Taxes (EBIT) and listed on the Income Statement, the Operating Profit shows how much profit is left after subtracting operating expenses - those expenses associated with selling the goods or services.

Look up pretax earnings, and add back interest expense and taxes (EBIT). Divide EBIT by interest expense, and you will know how many times (hence the name) the company could have paid the interest expense on its debt.

Interest coverage ratio (EBIT / interest expense).
Earnings dividend payout ratio (dividend per share / earnings per share).
Free cash flow dividend payout ratio (dividends paid / free cash flow to equity).

Also called operating profit or EBIT (earning before interest and taxes), this is a measure of a company's earning power from ongoing operations, equal to earnings before deduction of interest payments and income taxes.
Options ...

is arrived at by using a simple equation. It is equal to a company's revenue minus expenses that are used to keep the business going. Another way it is expressed is EBIT or earnings before interest and taxes.
CATEGORIES ...

Operating Income - a measure of the earning power from a company's ongoing operations. Operating income is sometimes referred to as operating profit or earnings before interest and taxes (EBIT).

See also: Earnings, Interest, Profit, Rating, Market