Earnings Before Interest and Tax

(redirected from Net Operating Profits)
Also found in: Acronyms.

Earnings Before Interest and Tax

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) but not subtracting its tax liability or interest paid on debt. It is important to note that EBIT does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. EBIT 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 also called operating profit.
References in periodicals archive ?
520 billion * Increase of net operating profit for the quarter by 45% as comparedto Q3 2007
Fortis's insurance arm reported a five per cent rise in net operating profits to pounds 207 million in the first quarter boosted by its general insurance business and a strong performance from its operations in the US.
Acorn Systems helps clients measure, analyze, predict, and then optimize Net Operating Profits at any level of granularity desired including products, vendors, customers, even individual orders, in order to maximize shareholder value.
taxpayer's net operating profit before taxes, or the foreign parent company's cost-plus?
Yesterday, however, it said the economic slowdown, coupled with volatile stock markets, meant income from commission and investments was lower than expected and net operating profits were likely to rise by just 5pc.
Net operating profit for the quarter ended July 31, 1999 was $191,000, before adjustments, as compared to a $184,000 profit for the same quarter in 1998.
announced that the net operating profits for the first quarter ended June 30, 2006 were $108,701, as compared to a net operating loss of $178,120 for the company's first quarter ended June 30, 2005.
Net operating profit climbed to pounds 973 million against analysts' expectations of pounds 925 million, from pounds 935 million last year.
Segway Financial has produced net operating profits in each of its fiscal years since its inception.
In 1993, the bank's internal audit team identified provision requirements of Ffr 18 billion equivalent to 135% of net operating profits following provisions of Ffr 14 billion in 1992.
Under the terms of the collaboration, Curis retained a co-development option under which Curis may fund up to an equal share of the development costs and share in a commensurate portion of future net operating profits and losses, if any, of clinical candidates that are topical formulations of compounds intended to treat basal cell carcinoma.
The 5 percent of patients with hospital-acquired infections erode 63 percent of the average hospital's inpatient net operating profits.