Earnings Before Interest and Taxes, or EBIT, indicates how much a company earns from its ongoing business operations before accounting for interest and taxes.EBIT is essentially the same as operating income. In some cases, firms might include other income in their EBIT. Other Income are other sources of income or expenses that arise from activities that are NOT the central part of a company’s business, examples are: Rental income. Profit from investments. Foreign exchange gain. Sale of assets.
Learn Earnings before Interest and Taxes (EBIT) with interactive examples and practice exercises in our Income Statement module.
This interactive learning module helps you understand Earnings before Interest and Taxes (EBIT) through hands-on practice and real-world examples.