EBIT

Earnings before interest and taxes, commonly derived from net income by adding back interest and income taxes. It can differ from operating income because of nonoperating items.

Also called Earnings before interest and taxes

EBIT in practice

A company’s operating-income subtotal is not automatically its EBIT. Reconcile net income, interest, taxes and any nonoperating items before equating the measures. The original Hanil operating-income figure does not by itself establish a verified EBIT reconciliation.

Source: SEC: EBIT and EBITDA reconciliations, questions 103.01–103.02.

Operating income · EBITDA · Income statement · Depreciation · All of the glossary