EBIT (Earnings Before Interest and Taxes) is an indicator of a company’s profitability, operating earnings, profit, or operating income, of which EBIT is calculated as all profits before taking interest payments and income taxes. EBIT focuses on an organisation’s ability to generate earnings from operations, ignoring variables such as the tax burden and capital structure that is a way to determine the profitability of a business by excluding interest and income tax expenses.
Reference Definition by Investopedia: Earnings before interest and taxes (EBIT) is a company’s net income before income tax expense and interest expense have been deducted. EBIT is used to analyze the performance of a company’s core operations without tax expenses and the costs of the capital structure influencing profit.
Related Definitions in the Project: The Project Cost; Economic Reviews; Commercial Definitions; Project Controls, Project Management
