EBIT
Earnings before interest and taxes (EBIT) is a widely used measure of a company’s profitability from its ongoing operations. It is calculated by subtracting expenses excluding tax and interest from revenue and does not include one-off revenues or expenses. EBIT is a closely watched measure as it represents the amount of money a company has to pay off its creditors if it suddenly liquidated. It is also called operating profit.
This definition is for general information purposes only