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In finance, earnings before interest and taxes, is a measure of an company’s benefit that precludes interest and income tax expenses. EBIT is the difference between working incomes and working liabilities.
Calculator of Earnings Before Interest and TaxesDOWNLOAD CALCULATOR
Formula of Earnings Before Interest and Taxes
EBIT = R – E
- R = Sales Revenue
- E = Operating Expenses
Example of Earnings Before Interest and Taxes
A company has sales of $500000 with operating costs of $400000. Calculate the Earnings Before Interest and Taxes (EBIT).
Sales Revenue (R) = $500000 Operating Expenses (E) = $400000
Earnings Before Interest and Taxes
EBIT = R – E = $500000 – $400000 = $100000