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.

Use EBIT in a sentence

I wondered what my ebit was,but there was no point because I lost a lot of it to taxes and it would just make me feel bad.

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When the auditor went over the family's bills, he found they had miscalculated the EBIT, earnings before interest and taxes.

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When my company reported its earnings, my boss was careful to focus on our EBIT, since those earnings before taxes showed a much better image than the overall picture.

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degree of operating leverage (DOL) times interest earned