EBIT (earnings before interest and taxes) measures the company's operating profit before interest and taxes. This means that interest and taxes are excluded from the operating costs and produces the result after write-downs and depreciation. EBIT measures the company's profitability through its revenue minus its costs of operating the business before interest and tax effects.
EBIT is a measure of a company's profitability by measuring its revenue minus its costs of operating the business before interest and tax effects. This ratio is often used to compare companies within the same industry and to assess their ability to generate profits through their core business. EBIT can also be used to calculate the EBIT margin, which is EBIT expressed as a percentage of revenue.