EBIT (earnings before interest and taxes)

EBIT (earnings before interest and taxes) is a profit measure that shows how your business performs from its operations, before the effect of financing and income tax. It helps you compare profitability across businesses and periods, even if they use different loans or face different tax situations.

In UK reports you’ll often see operating profit. It is usually similar to EBIT, but definitions can vary, especially for items outside core operations. EBIT includes depreciation and amortisation; EBITDA adds these back and focuses more on cash-like performance.

What EBIT typically includes and excludes:

• Includes revenue (turnover) minus day‑to‑day operating costs, including depreciation and amortisation.
• Excludes interest on borrowings and income tax.
• One‑off or non‑operating items may be handled differently by each business; check the policy used.
• Useful for benchmarking performance before financing and tax effects.