Terms Beginning With 'e'

Earnings before interest and taxes

  • January 02, 2020
  • Team Kalkine

Earnings before interest and taxes (or EBIT) is also called the operating income that reflects the revenue generated by the business after considering all the operating expenses, i.e., revenue minus operating expense, and is a measure of operating earnings or profit before interest and taxes. Financial analysts generally use EBIT to analyse the performance of the core operations of a company without incorporating the costs of the capital structure and tax.

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