3.1.10. EBIT

The EBIT (Earnings Before Interest and Taxes) is given by subtraction the depreciations and amortization and the impairments of depreciable/amortizable investment (losses/reversals) to the EBITDA. EBIT offers the idea about the company’s activity without taking into consideration the company’s funding structure.

How to calculate the EBIT:

+ EBITDA

– Depreciations

+ Depreciations reversals

-/+ Investment impairments

= EBIT