EBIT (Earnings before Interest and Taxes) is a measurement of profitability of a firm. It is also known as operating profit.
EBIT (simple) = Revenue – Operating Expense
EBIT (alternate) = Net Income + Interest + Taxes
- Houston Chronicle – Difference between EBIT and Profit Before Taxes – Some of the differences between EBIT and Profit before taxes.
- AccountingSchool.org – EBIT and EBITDA – A short summary of the differences between EBIT and EBITDA.
- Wikipedia – Earnings before interest and taxes – Wikipedia’s entry on EBIT. Includes an example from a balance sheet.
- Investopedia – Earnings Before Interest & Taxes & What is the difference between EBIT and EBITDA – An explanation of EBIT and a comparison with EBITDA.