Earnings Before Interest and Tax(EBIT)

Earnings Before Interest and Tax calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income".

EBIT=Revenue-Operating expenses

EBIT=Revenue- Expenses (excluding Interest and Taxes)

EBIT is all profits before taking into account interest payments and income taxes. EBIT nulls the effects of the different capital structures and tax rates used by different companies. By excluding both taxes and interest expenses, the figure indicates the company's ability to make profit and thus makes it easier for comparisions.