EBIT

Definition
Earnings Before Interest and Taxes. A measure of a company's 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.




EBIT is ...
... part of the
Accounting, Earnings and Investor Relations subjects.


Related Terms

operating income -  More
times interest earned -
EBIT margin -  More


EBIT appears in these other terms

EBITDA, EBITDA margin, EBITDAR


EBIT appears in the definitions of these other terms on BusinessDictionary.com

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