October 18, 2018

EBIT

5. EBIT (Earnings Before Income & Taxes):

Given below is the most typical and simple structure of a P/L statement:

 

5. EBIT (Earnings Before Income & Taxes)

Deducting Depreciation/ Amortisation from EBITDA gives us EBIT. In the above example, Depreciation/Amortisation is Rs. 20.

In the above example, EBIT is Rs. 60 which is calculated as 80 (EBITDA) – 20 (Depreciation/ Amortisation)

                         

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