Finance
EBIT stands for Earnings Before Interest and Taxes, which is a measure of a firm's profitability that excludes interest and income tax expenses. This metric helps in assessing a company's operational performance and efficiency, as it focuses solely on earnings derived from core business operations. By removing interest and taxes from the equation, EBIT provides a clearer view of a company’s ability to generate profit from its operations, which is crucial when analyzing financial and operating leverage.
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