EBIT Definition

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.

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Related Terms

operating income - More

times interest earned -

EBIT margin - More

Mentioned in these terms

EBITDAR

EBITDA margin

EBITDA

Related Terms on BusinessDictionary

accounting rate of return (ARR)
financial breakeven point
financial break-even point

fixed charge coverage ratio
profitability ratios
times interest earned ratio

Popular 'Accounting' Terms

current ratio
equity
working capital
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EBITDA

revenue
net income
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net profit
net worth

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

Nearby Terms

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EBIDTA
EBIT
EBIT margin
EBITDA
EBITDA margin
EBITDAR
ECB

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