Earnings Before Interest After Taxes

Earnings before interest after taxes (EBIAT)

A financial measure defined as revenues less cost of goods sold and selling, general and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest plus cash income taxes. Equivalent to EBIT minus cash taxes.

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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.