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What Is Earnings Before Interest and Taxes (EBIT)?

By Lyle DalyUpdated 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.

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