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.

​ Was this Helpful? YES  NO 2 people found this helpful.

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

​ Was this Helpful? YES  NO 11 people found this helpful.

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.

​ Was this Helpful? YES  NO 15 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
EBIT margin degree of operating leverage (DOL)