Earnings Before Interest and Tax

(redirected from Net Operating Profits)
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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.
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 climbed to pounds 973 million against analysts' expectations of pounds 925 million, from pounds 935 million last year.