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

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 • Mar. 6, 2026

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

From The Wall Street Journal • Mar. 4, 2026

Analysts had expected 83 million euros of EBIT.

From Reuters • Sep. 6, 2022

As per Target's short-term incentive plan, Cornell's compensation is based on the performance of two financial metrics: incentive EBIT, which makes up 75 percent of Cornell's stock component, with the rest based on adjusted sales.

From Reuters • May 1, 2017