Earnings before interest and taxes

In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses.[1][2]

Operating income and operating profit are sometimes used as a synonym for EBIT when a firm does not have non-operating income and non-operating expenses.[3]

  1. ^ Bodie, Zvi; Kane, Alex; Marcus, Alan (2004). Essentials of Investments. McGraw Hill. p. 452. ISBN 9780072510775.
  2. ^ "Earnings before interest and, taxes (EBIT)". NASDAQ.
  3. ^ Murphy, Chris B. (2019-07-11). "How are EBIT and operating income different?". Investopedia.

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