Katana VentraIP

Earnings before interest and taxes

In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses.[1][2]

Operating income and operating profit are sometimes used as a synonym for EBIT when a firm does not have non-operating income and non-operating expenses.[3]

EBIT = (net income) + interest + taxes = – (depreciation and amortization expenses)

EBITDA

operating income = () – OPEX = EBIT – (non-operating profit) + (non-operating expenses)[3]

gross income

where

Earnings before taxes[edit]

Earnings before taxes (EBT) is the money retained by the firm before deducting the money to be paid for taxes. EBT excludes the money paid for interest. Thus, it can be calculated by subtracting the interest from EBIT (earnings before interest and taxes).

(EBITA)

Earnings before interest, taxes, and amortization

(EBITD)

Earnings before interest, taxes, and depreciation

(EBITDAR)

Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs

(EBITDA)

Earnings before interest, taxes, depreciation, and amortization

EV/EBITDA

(OIBDA)

Operating income before depreciation and amortization