Knowledge (XXG)

Earnings before interest and taxes

Source 📝

129: 86: 430: 448: 128:) first evaluates a firm's fundamental earnings potential (reflected by earnings before interest, taxes, depreciation and amortization ( 406: 496: 200: 322:. Thus, it can be calculated by subtracting the interest from EBIT (earnings before interest and taxes). 422: 73: 47: 43: 165: 136: 402: 121: 97: 345:
Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs
125: 501: 398: 132:) and EBIT), and then determines the optimal use of debt versus equity (equity value). 490: 452: 196: 93: 387: 394: 31: 17: 466: 314:) is the money retained by the firm before deducting the money to be paid for 282: 140: 55: 356: 319: 51: 344: 69: 426: 350: 143:
is later obtained by subtracting interest and taxes from the result.
139:, selling and administrative expenses) are subtracted from revenues. 361: 338: 332: 315: 108:
EBITDA = earnings interest, taxes, depreciation, and amortization
351:
Earnings before interest, taxes, depreciation, and amortization
100:= EBIT – (non-operating profit) + (non-operating expenses) 120:
A professional investor contemplating a change to the
46:
that includes all incomes and expenses (operating and
362:
Operating income before depreciation and amortization
147:Example statement of income (figures in thousands) 386: 339:Earnings before interest, taxes, and depreciation 333:Earnings before interest, taxes, and amortization 449:"How are EBIT and operating income different?" 442: 440: 385:Bodie, Zvi; Kane, Alex; Marcus, Alan (2005). 188:Selling, general and administrative expenses 8: 423:"Earnings before interest and, taxes (EBIT)" 380: 378: 242:Earnings before interest and taxes (EBIT) 89:– (depreciation and amortization expenses) 85:EBIT = (net income) + interest + taxes = 145: 374: 467:"What is EBIT? definition and meaning" 258:Income before interest expense (IBIE) 135:To calculate EBIT, expenses (e.g. the 7: 274:Earnings before income taxes (EBT) 72:for EBIT when a firm does not have 318:. EBT excludes the money paid for 36:earnings before interest and taxes 25: 433:from the original on Jun 5, 2023. 447:Murphy, Chris B. (2019-07-11). 1: 76:and non-operating expenses. 124:of a firm (e.g., through a 42:) is a measure of a firm's 518: 27:Measure of a firm's profit 389:Essentials of Investments 218:Total operating expenses 182: 151: 111:OPEX = operating expense 68:are sometimes used as a 308:Earnings before taxes 302:Earnings before taxes 234:Non-operating income 497:Fundamental analysis 92:operating income = ( 74:non-operating income 183:Operating expenses 148: 266:Financial expense 166:Cost of goods sold 146: 137:cost of goods sold 471:investorwords.com 299: 298: 250:Financial income 226:Operating profit 122:capital structure 16:(Redirected from 509: 481: 480: 478: 477: 463: 457: 456: 444: 435: 434: 419: 413: 412: 392: 382: 323: 149: 126:leveraged buyout 66:operating profit 62:Operating income 21: 18:Operating profit 517: 516: 512: 511: 510: 508: 507: 506: 487: 486: 485: 484: 475: 473: 465: 464: 460: 446: 445: 438: 421: 420: 416: 409: 384: 383: 376: 371: 329: 306: 304: 210:Other expenses 118: 82: 28: 23: 22: 15: 12: 11: 5: 515: 513: 505: 504: 499: 489: 488: 483: 482: 458: 436: 414: 407: 373: 372: 370: 367: 366: 365: 359: 354: 348: 342: 336: 328: 325: 303: 300: 297: 296: 293: 289: 288: 285: 279: 278: 275: 271: 270: 267: 263: 262: 259: 255: 254: 251: 247: 246: 243: 239: 238: 235: 231: 230: 227: 223: 222: 219: 215: 214: 211: 207: 206: 203: 193: 192: 189: 185: 184: 180: 179: 176: 172: 171: 168: 162: 161: 158: 157:Sales revenue 154: 153: 117: 114: 113: 112: 109: 102: 101: 90: 81: 78: 26: 24: 14: 13: 10: 9: 6: 4: 3: 2: 514: 503: 500: 498: 495: 494: 492: 472: 468: 462: 459: 454: 450: 443: 441: 437: 432: 428: 424: 418: 415: 410: 408:9780072510775 404: 400: 396: 391: 390: 381: 379: 375: 368: 363: 360: 358: 355: 352: 349: 346: 343: 340: 337: 334: 331: 330: 326: 324: 321: 317: 313: 309: 301: 294: 291: 290: 286: 284: 281: 280: 276: 273: 272: 268: 265: 264: 260: 257: 256: 252: 249: 248: 244: 241: 240: 236: 233: 232: 228: 225: 224: 220: 217: 216: 212: 209: 208: 204: 202: 198: 195: 194: 190: 187: 186: 181: 177: 175:Gross profit 174: 173: 169: 167: 164: 163: 159: 156: 155: 150: 144: 142: 138: 133: 131: 127: 123: 115: 110: 107: 106: 105: 99: 95: 91: 88: 84: 83: 79: 77: 75: 71: 67: 63: 59: 57: 54:expenses and 53: 49: 48:non-operating 45: 41: 37: 34:and finance, 33: 19: 474:. Retrieved 470: 461: 453:Investopedia 417: 388: 311: 307: 305: 283:Income taxes 201:amortization 197:Depreciation 134: 119: 103: 94:gross income 65: 61: 60: 39: 35: 29: 395:McGraw Hill 292:Net income 491:Categories 476:2019-10-03 397:. p.  369:References 141:Net income 58:expenses. 56:income tax 32:accounting 357:EV/EBITDA 347:(EBITDAR) 178:$ 12,495 160:$ 20,438 50:) except 431:Archived 353:(EBITDA) 327:See also 320:interest 295:$ 2,183 287:$ 1,027 277:$ 3,210 261:$ 3,400 245:$ 3,355 229:$ 3,225 221:$ 9,270 191:$ 8,172 170:$ 7,943 152:Revenue 116:Overview 52:interest 364:(OIBDA) 341:(EBITD) 335:(EBITA) 80:Formula 70:synonym 502:Profit 427:NASDAQ 405:  269:$ 190 237:$ 130 213:$ 138 205:$ 960 130:EBITDA 104:where 87:EBITDA 44:profit 316:taxes 253:$ 45 403:ISBN 199:and 98:OPEX 96:) – 64:and 40:EBIT 399:452 312:EBT 30:In 493:: 469:. 451:. 439:^ 429:. 425:. 401:. 393:. 377:^ 479:. 455:. 411:. 310:( 38:( 20:)

Index

Operating profit
accounting
profit
non-operating
interest
income tax
synonym
non-operating income
EBITDA
gross income
OPEX
capital structure
leveraged buyout
EBITDA
cost of goods sold
Net income
Cost of goods sold
Depreciation
amortization
Income taxes
taxes
interest
Earnings before interest, taxes, and amortization
Earnings before interest, taxes, and depreciation
Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs
Earnings before interest, taxes, depreciation, and amortization
EV/EBITDA
Operating income before depreciation and amortization

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.