Business Dictionary
EBIT Definition
A-B C-D E-G H-K L-N O-P R-S T-W
EBIT ( Earnings Before Interest & Tax ). This drills down to a more realistic picture of profitability by taking Net Net Contribution less other costs to serve & Depreciation (i.e. operating expenses).
EBIT is known as operating income.
Formula EBIT = Gross Profit - Operating Expenses (Marketing+ Sales + Distribution + Warehouse + Administration + Management Fees+ Depreciation)
EBIT Margin: The Percentage of the Net Revenue. Formula: EBIT Margin = EBITDA/Net Revenue
Related Reading:
EBITDA
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