1. Finance
  2. Financial Statements

Earnings Before Interest and Taxes (EBIT)


A company's net income before interest and income tax expenses are considered. EBIT provides a clear picture of a company's operational profitability, excluding the impact of finance and tax strategies.


Net Income + Interest + Taxes


If a company's net income is $500,000, with interest expenses of $50,000 and tax expenses of $100,000, the EBIT is $650,000.