Earnings Before Interest and Taxes (EBIT)

Earnings Before Interest and Taxes (EBIT) is a financial measure that shows a company's profitability from its core operations, excluding the costs related to interest on debt and taxes. It represents the earnings generated from regular business activities before any financial obligations are considered. EBIT is useful for assessing a company's operational efficiency and performance, as it highlights how well a business can generate profit from its revenue. Investors and analysts often use EBIT to compare companies within the same industry, since it provides a clearer picture of operational success without the influence of financial structure and tax strategies.