EBIT measures the operating profit and thus shows the profitability of a business.

Alias

Profit before Interest and Taxes

Abbreviation

EBIT

Unit

Currency (Euro/Dollar/YEN/...)

Calculation

EBIT is calculated by deducting all operating and non-operating expenses except interest and taxes from revenue.

Revenue

- Expenses (interest & taxes included)

______________________________

EBIT

______________________________

Example

The previous year a company had revenue of 440,000€ and expenses of 410,000€. EBIT will therefore be 30,000€.

440,000€

- 410,000€

_________

30,000€

_________

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