EBIAT

Also found in: Acronyms.

EBIAT

See: Earnings Before Interest after Taxes

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.

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References in periodicals archive ?

The FCFs are calculated from EBIT, which is reduced by the hypothetical taxes on EBIT to determine EBIAT. Adding the non-cash adjustments to EBIAT results in FCFs.

Capital Cash Flows: a simple approach to valuing risky cash flows

Terminal values throughout the 1980s were based on a multiple of earnings befor interest and after taxes, reflecting what similar stocks in the market sold for or an EBIAT (earnings before interest and after taxes) multiple of what other companies paid for similar acquisitions.

This is your EBIAT number, which gives you an operating cash flow of $12.08.

No more capital punishment

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