Profitability

What is EBIT (Earnings Before Interest and Tax)?

EBIT measures operating profit before the effects of financing and tax — showing how much a company earns from its core business operations alone.

Formula

EBIT = Revenue - COGS - Operating Expenses (or Net Income + Interest + Tax)

How to Interpret

EBIT isolates operating performance from capital structure and tax effects, making it useful for cross-company comparison.

Typical Ranges

Focus on EBIT margin trends rather than absolute values.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter Indian stocks by EBIT.

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