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)