TEDSF Interview Skills Q&A Platform
1 like 0 dislike
4 views
Why is EBIT important as a business KPI?
in Business Analytics by Platinum (96.3k points) | 4 views

1 Answer

0 like 0 dislike
Best answer

EBIT stands for Earnings Before Interest and Taxes. By taking interest payments and income taxes away from the profit figure it basically eliminates the effects of the different capital structures and tax rates used by different companies.

 

EBIT is very closely related to operating profit and often the same.

 

EBIT provides a profitability figure that is better comparable across companies. A further evolution is also taking out depreciation and amortisation (see EBITDA).

 

EBIT = Revenue - Operating Expenses

by Platinum (96.3k points)

Related questions

1 like 0 dislike
1 answer
1 like 0 dislike
1 answer
1 like 0 dislike
1 answer
asked Dec 9, 2019 in Business Analytics by TEDSF Platinum (96.3k points) | 10 views
1 like 0 dislike
1 answer
1 like 0 dislike
1 answer
asked Dec 9, 2019 in Business Analytics by TEDSF Platinum (96.3k points) | 6 views
1 like 0 dislike
1 answer
asked Dec 9, 2019 in Business Analytics by TEDSF Platinum (96.3k points) | 11 views
1 like 0 dislike
1 answer
asked Dec 9, 2019 in Business Analytics by TEDSF Platinum (96.3k points) | 7 views
Welcome to TEDSF Skills Questions and Answers, a platform, where you can ask skills questions and receive answers from other members of the community. On TEDSF the youth, students, teachers, policy makers and enthusiasts can ask and answer any questions. Get help and answers to any skills-related problem including mathematics, computer science, data science, web development, physics, chemistry, digital marketing, African development and more. Help is always 100% free!

3.9k questions

1.4k answers

64 comments

29.3k users

3,850 questions
1,353 answers
64 comments
29,256 users