EBIT

American  

[ee-bit] / ˈiˌbɪt /

noun

Finance, Business.

1. earnings before interest and taxes: a widely used measure of the profitability (or lack thereof) resulting from a company’s core operations, calculated by subtracting from total revenue the cost of goods (or services) sold, sales and marketing expenses, the cost of overhead, and deductions for depreciation and amortization (generally of property and equipment). Other costs that may be indirectly related to operations, as interest (paid on company debt) and taxes (paid on profits), are not taken into account when calculating EBIT.

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Etymology

Origin of EBIT

First recorded in 1960–65

Example Sentences

The analysts said they arrived at that number by using Southwest’s one-time $3.8 billion Ebit, or earnings before interest and taxes, guidance for 2026.

From Barron's

RBC forecasts 6% Ebit growth and 13% EPS growth for Orica in FY 2026, on revenue growth of 5%.

From The Wall Street Journal

Sutcliffe raises her full-year Australia Ebit margin to 9.3% to 8.8%, but declines to fully translate the 1Q beat across the whole of fiscal 2026.

From The Wall Street Journal

Analyst Rohan Koreman-Smit says Steel & Tube isn’t likely to achieve breakeven Ebit until at least February or March.

From The Wall Street Journal

“However the 1Q performance of the Australian business is exceeding consensus revenue and Ebit growth expectations,” analyst Craig Wong-Pan says.

From The Wall Street Journal