Financial Statements
Earnings Before Interest and Taxes
Definition
What is Earnings Before Interest and Taxes?
Profit before interest expense and income tax, commonly abbreviated EBIT.
Example in practice
How This Looks in Practice
EBIT allows analysts to compare operations before financing and tax differences.
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Related Terms
Financial Statements
Revenue
Income generated from selling goods or services before expenses are deducted.
Financial StatementsSales Growth
The percentage increase or decrease in revenue over a period.
Financial StatementsCost of Goods Sold
Direct costs attributable to goods or services sold during a period.
Financial RatiosGross Margin
Gross profit expressed as a percentage of revenue.