What is the definition of Earnings Before Interest & Tax (EBIT)
- Posted on November 19, 2019
- Financial Terms
- By admin admin
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.
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