Financial Glossary

Earnings Before Interest and Taxes (EBIT)

Definition

EBIT measures a company's profitability before deducting interest and taxes: EBIT = Revenue ? Operating Expenses

Related Services

Corporate finance, investment analysis, and profit optimization strategies help businesses improve EBIT.

Problem and Application

EBIT focuses on operational profitability but does not consider financing costs or tax implications.

Conclusion

EBIT is a valuable metric for evaluating core business performance before financial structuring effects.