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Earnings before interest & taxes (EBIT)

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Definition

Earnings before interest and taxes (EBIT) is a measure of a company's earnings from ongoing operations. It does not include income and expenditures from one-off, non-recurring or discontinued business.

Formula

Operating Revenue – Operating Expenses (OPEX) + Non-operating Income i.e: Operating Income = Operating Revenue – Operating Expenses

Tags

tax, interest, earning, expenditure, income