Financial Accounting II
Earnings Before Interest and Taxes (EBIT) refers to a company's profitability measure that calculates earnings by excluding interest and income tax expenses. This figure is crucial as it provides a clearer view of a company's operational performance, allowing for comparisons across businesses regardless of their financing structures or tax situations. EBIT is often used in various financial analyses, including those assessing long-term contracts and evaluating profitability and leverage ratios.
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