Earnings Before Interest and Taxes (EBIT) is a financial metric that measures a company's profitability by calculating its operating income before deducting interest expenses and income taxes. It is also known as operating profit or operating earnings.

EBIT provides insight into a company's core operating performance, disregarding the effects of interest and taxes. By excluding these factors, EBIT allows for a clearer understanding of how well a company's operations are generating profits.

To calculate EBIT, one must subtract the operating expenses, such as the cost of goods sold, operating expenses (such as salaries, rent, and utilities), and depreciation and amortization, from the company's revenue. The resulting figure represents the earnings generated from the company's primary operations.

EBIT is a useful metric for comparing the profitability of different companies within the same industry, as it focuses solely on operational efficiency. It enables investors and analysts to assess a company's ability to generate profits from its core business activities, independent of financing decisions and tax obligations.

Earnings Before Interest and Taxes (EBIT) is a financial metric that measures a company’s profitability from its core operations, excluding the effects of interest and income tax expenses. It shows how efficiently a company generates earnings from its main business activities before considering financing costs or tax obligations. EBIT is calculated by subtracting operating expenses, including cost of goods sold (COGS) and operating costs, from total revenue. It’s often used by investors and analysts to compare companies within the same industry, regardless of their capital structures or tax situations. By focusing solely on operational performance, EBIT provides a clearer picture of a company’s ability to generate profits and sustain growth from its day-to-day business operations.