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]

Formula

EBIT = Net income + Interest + Taxes = EBITDA – Depreciation and Amortization expenses
Operating income = operating revenueoperating expenses (OPEX) = EBIT – non-operating profit + non-operating expenses[3]
Other Languages