Definition of ‘EBIT’

EBIT stands for Earnings before interest and tax. EBIT effectively represents the earnings of a business before the effects of its method of financing activities (interest), and any tax rates.

An investor will use EBIT to evaluate a business before considering the effects of debt and equity on its optimal performance.

EBIT is sometimes referred to as operating income.

Financial Projections Template EBIT Definition

The EBIT definition for use in the financial projections template is EBITDA less the depreciation expense. It represents the operating income of the business before taking into account the effects of interest and taxation.

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EBITDA December 17th, 2015Team

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