earnings before interest and taxes


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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.

earnings before interest and taxes (EBIT)

References in periodicals archive ?
The Gas Services Group, which includes Enron Gas Services and Houston Pipe Line, reported earnings before interest and taxes of $37.
Enron's interstate natural gas pipelines reported earnings before interest and taxes of $51.
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