What is EBIT?
EBIT is a metric that measures the profit generated by the business operations. It‘s an acronym that stands for Earnings Before Interest and Taxes. This profit metric accounts for all of the company’s income and expenses, except non-operating items, interest, and taxes. What we have at the end, is therefore a profit metric that measures solely the earnings from the core business operations.
Another name for EBIT is “Operating Income”. Companies often label Operating Income as opposed EBIT on the Income Statement.