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

Member

by bell , in category: Stocks and Equities , a year ago

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

Facebook Twitter LinkedIn Telegram Whatsapp

1 answer

Member

by mandy , a year 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.