EBIT
2 July 2021
EBIT stands for Earnings Before Interest and Taxes. By taking interest payments and income taxes away from the profit figure it basically eliminates the effects of the different capital structures and tax rates used by different companies.
EBIT is very closely related to operating profit and often the same.
EBIT provides a profitability figure that is better comparable across companies. A further evolution is also taking out depreciation and amortisation (see EBITDA).
EBIT = Revenue – Operating Expenses
This indicator is included in the book: Key Performance Indicators – the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.
Related Articles
The Best Smart Watches In 2023 / 2024: From Blood Sugar Monitoring To AI Personal Training
Apple popularized the smartwatch, just as it did with the smartphone when it released the Apple watch in 2015.[...]
The Amazing Ways Snowflake Uses Generative AI For Synthetic Data And Natural Language Queries
You probably know that the new generation of generative AI tools that have exploded onto the scene can generate words, pictures and even videos that closely resemble those created by humans.[...]
The Role of Data Storage in Accelerating Time-to-Insights
When it comes to data and analytics, time is money. According to research by IDC, 75 percent of business decision-makers believe data loses its value within days.[...]
The Top 5 Tech Trends In 2024 Everyone Must Be Ready For
Once again, we’ve reached the time of year when we look ahead at what technology has in store for us in 2024.[...]
The Amazing Ways Coca-Cola Uses Generative AI In Art And Advertising
Some say that in the very near future, we’ll need to either adopt artificial intelligence (AI) or be made redundant by it – or by others using it.[...]
The 5 Biggest Risks of Generative AI: Steering the Behemoth Responsibly
In our contemporary world, the pressures of the professional sphere often encroach upon our personal space, giving rise to stress and an overwhelming sense of dread.[...]
Stay up-to-date
- Get updates straight to your inbox
- Join my 1 million newsletter subscribers
- Never miss any new content
Social Media