Earnings Before Interest and Tax (EBIT)

EBIT is a company's operating profit before interest and tax are deducted.

What is Earnings Before Interest and Tax (EBIT)?

Unlike EBITDA, EBIT keeps depreciation and amortisation as costs, so it better reflects the cost of using fixed assets. The higher a company's depreciation, the bigger the gap between EBIT and EBITDA.

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