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

Canal+ issued weak guidance, expecting 565 million euros in EBIT, significantly below analyst forecasts of 882 million euros.

From Barron's • Mar. 11, 2026

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 • Mar. 5, 2026

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

From The Wall Street Journal • Mar. 4, 2026

It also said it expected growth in recurring operating EBIT, and to generate free cash flow of more than 3 billion francs after posting a figure of 3.26 billion for 2021.

From Reuters • Feb. 25, 2022

That compares with a current valuation of Philips Lighting of 10 times 2012 EBIT.

From Reuters • May 4, 2011