Earnings Before Interest and Taxes

Definition

EBIT. A measure of a company's earning power from ongoing operations, equal to earnings before deduction of interest payments and income taxes. also called operating profit or operating income.

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You should try to make sure that you know what your earnings before interest and taxes are and look to get more.

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The earnings before interest and taxes was something really cool and I was glad that they measured their earning power.

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For the following fiscal year the owning venture capital firm increased the operations departments budget due to very profitable earnings before interest and taxes.

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interest coverage ratio degree of operating leverage (DOL)