What Is Earnings Before Interest and Taxes (EBIT)?

By Lyle Daly – Updated Apr 3, 2025 at 2:10 PM

Key Points

EBIT measures a company's profitability by subtracting costs and expenses from total revenue.
Comparing EBIT over time or against competitors reveals growth and operational efficiency.
Only compare EBIT for companies within the same industry because it varies significantly by market sector.

Earnings before interest and taxes (EBIT) is a company's revenue minus its expenses, excluding tax and interest. EBIT is essentially a financial metric that indicates profitability, making it useful for stock analysis.

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A businessperson reviewing an income statement. — Image source: Getty Images.

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.