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Encyclopedia > EBIT

EBIT stands for "Earnings before Interest and Taxes" (operating income). A professional investor contemplating a change to the capital structure of a firm (e.g., through a leveraged buyout) first evaluates a firm's fundamental earnings potential (reflected by EBITDA or EBIT), and then determines the optimal use of debt vs. equity.


See also

External links

  • operating income Definition (http://www.investorwords.com/3460/operating_income.html)

  Results from FactBites:
 
EBIT (125 words)
EBIT is used in similar ways to other profit measures such as EBITDA.
The valuation ratio that most commonly uses EBIT is EV/EBIT which is similar to EV/EBITDA - apart from the inclusion of depreciation and amortisation as costs.
Trading profit is similar to operating profit and EBIT but excludes items that although do not arise from the regular trading actives of a business - certain asset sales for example.
Ebit Solutions (573 words)
Ebit Solutions was founded in 1999 and since that time has designed, implemented and managed networks and computer systems for companies and organizations across London and the South East.
Ebit Solutions is trusted and relied upon by countless other businesses for a wide variety of services.
Ebit Solutions was founded in 1999 and since that time has designed, implemented and managed networks and computer systems for many diverse companies and organisations.
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