Definition Short for earnings before interest and taxes. A company’s profit from its core operations, before interest and tax are deducted.
Example Revenue of €5m minus €4.2m of operating costs gives an EBIT of €800k.
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Choose your role to see what this term means in your work.
Why it matters It shows how profitable the core business is before financing and tax decisions.
Where it is used Finance reports, investor updates and profit dashboards.
How to calculate it Revenue − operating costs, including cost of goods sold
Worked example Revenue of €5m minus €4.2m of operating costs gives an EBIT of €800k.
