What is EBIT?


What is EBIT?

EBIT is the English term for operating income and stands for Earnings Before Interest & Taxes. EBIT refers to all revenues (sales) reduced by all costs, excluding financing costs and corporate income tax. Think from your company's business model perspective: the revenue streams and customers you target and the cost structure you use to generate the income.

The way your organization is structured, the focus and coherence applied in the processes, and the decisions made collectively determine the EBIT's formation. In other words, this constitutes the quality of your EBIT.

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