EBIT

American

[ee-bit] / ˈiˌbɪt /

noun

Finance, Business.

earnings before interest and taxes: a widely used measure of the profitability (or lack thereof) resulting from a company’s core operations, calculated by subtracting from total revenue the cost of goods (or services) sold, sales and marketing expenses, the cost of overhead, and deductions for depreciation and amortization (generally of property and equipment). Other costs that may be indirectly related to operations, as interest (paid on company debt) and taxes (paid on profits), are not taken into account when calculating EBIT.

Etymology

Origin of EBIT

First recorded in 1960–65

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Virgin Australia reported 1H Ebit of A$490 million.

From The Wall Street Journal

Ampol said the Australia Convenience Retail business delivered mid-single digit percent Ebit growth in 2025.

From The Wall Street Journal

The analysts said they arrived at that number by using Southwest’s one-time $3.8 billion Ebit, or earnings before interest and taxes, guidance for 2026.

From Barron's

RBC forecasts 6% Ebit growth and 13% EPS growth for Orica in FY 2026, on revenue growth of 5%.

From The Wall Street Journal

Sutcliffe raises her full-year Australia Ebit margin to 9.3% to 8.8%, but declines to fully translate the 1Q beat across the whole of fiscal 2026.

From The Wall Street Journal

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023