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 company guided for a significant increase in earnings in 2026, which in the case of Lufthansa, the analysts say equates to an increase of more than 10% in EBIT.

From The Wall Street Journal

In the final quarter of 2025, its supply chain and post and parcel Germany units both reported an increase in EBIT, while the express shipping, freight forwarding and e-commerce businesses registered declines.

From The Wall Street Journal

The company’s new 2026 guidance includes a wide range on adjusted EBIT.

From The Wall Street Journal

Virgin Australia reported 1H Ebit of A$490 million.

From The Wall Street Journal

Ampol said the Australia Convenience Retail business delivered mid-single digit percent Ebit growth in 2025.

From The Wall Street Journal