What is EBIT? Earnings Before Interest and Taxes. A measure of a companys earning power from ongoing operations, equal to earnings before deduction of interest payments and income taxes. EBIT excludes income and expenditure from unusual, non-recurring or discontinued activities. In the case of a company with minimal depreciation and amortization activities, EBIT is watched closely by creditors, since it represents the amount of cash that such a company will be able to use to pay off creditors. also called operating profit. Example Calculating EBIT is a figure that helps compare the success of different companies since it excludes interest and Tax
Posted on: Sat, 01 Feb 2014 04:58:47 +0000
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