EBIAT


Also found in: Acronyms.

EBIAT

Earnings Before Interest After Taxes

A measure of a company's ability to produce income on its operations in a given year. It is calculated as the company's revenue less its expenses (such as overhead) and tax liability, but not subtracting its interest paid on debt. The EBIAT does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. EBIAT represents cash available to pay off creditors in the event of liquidation and, as such, it is closely watched, especially when the company incurs little depreciation or amortization. It is a less common measure than earnings before interest and taxes.
References in periodicals archive ?
Non-IFRS ROIC is calculated by dividing non-IFRS adjusted EBIAT by average non-IFRS net invested capital.
Free Cash Flow Valuation Year 1 Year 2 Year 3 EBIT 16,667 26,667 36,667 Less: Tax on EBIT 5,500 8,800 12,100 EBIAT 11,167 17,867 24,567 Non-Cash Adjustments (b) 43,333 43,333 43,333 Free Cash Flows 54,500 61,200 67,900 Capitalization: Total Enterprise Value (d) 136,996 102,932 58,214 Debt 100,000 50,000 20,000 WACC Calculations: Debt Percent 73.
ROIC is calculated by dividing adjusted EBIAT by average net invested capital.
EBIAT is defined as earnings before interest, amortization of intangibles assets (excluding computer software) and income taxes.
Amortization of computer software is not added back for EBIAT and adjusted net earnings.