What is the definition of Earnings Before Interest & Tax (EBIT)

EBIT stands for Earnings Before Interest & Tax and is a common indicator of the profitability of a firm.

The calculation is Operating Income + Stock-Based Compensation, or Revenue - Operating Expenses - Depreciation - Amortization.

The reason behind using EBIT is because it allows you to see the profitability of a company regardless of the tax rate or capital structure.