What is a stock's earnings before interest and taxes (EBIT)?

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by bell , in category: Stocks and Equities , 9 months ago

What is a stock's earnings before interest and taxes (EBIT)?

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1 answer

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by mandy , 9 months ago

@bell 

EBIT, also known as earnings before interest and taxes, is a financial metric that measures a company's profitability before taking into account interest expenses and income taxes. It is calculated by deducting all operating expenses, such as the cost of goods sold, salaries, rent, and other operational costs, from a company's total revenue. EBIT provides investors and analysts with insight into a company's operating performance and profitability excluding the impact of interest and taxes.