Thursday, November 5, 2015

Term of the Day: Earnings Before Interest & Tax - EBIT

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November 5, 2015
Earnings Before Interest & Tax - EBIT

An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "profit before interest and taxes (PBIT)."

Breaking It Down:

EBIT measures the profit a company generates from its operations, making it synonymous with...

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Related to "Days Sales Outstanding - DSO"


EBIT (Earnings Before Interest and Taxes) - Video

Earnings before interest and taxes, or EBIT, takes a company's revenue, or earnings, and subtracts its...

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Let's face it, a company's most important goal is to make money and keep it, which depends on...

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Whether you watch analysts on CNBC or read articles in The Wall Street Journal, you'll hear experts insisting on...

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Recently Added Definitions


Employee Stock Option - ESO

A stock option granted to specified employees of a company. ESOs carry the right, but not the obligation...

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The crowding out effect is an economic theory stipulating that rises in public sector spending drive down or...

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Related Definitions

Operating Loss - OL
Earnings Before Interest, Tax and Depreciation - EBITD
Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA
EBIT/EV Multiple
EBITDARM

Past Terms of the Day

Days Sales Outstanding - DSO
Days Sales Of Inventory - DSI
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