EBIT stands for “Earnings before interest and tax”; this term is a part of income statement indicates the earning including interest amount and tax. The other common term used for EBIT are operating profit and operating earnings.
Let me explain the terms in EBIT in detail
Earning – Earning is the profit of organization
Interest – The surplus amount which organization pay on debt
Tax – Amount which organization pays to Government on sales or services.
EBIT can be determined by using this formula (total sales – cost of goods sold – operating expenses). Total sales is the revenue received after selling the product or services
Costs of goods sold are the purchasing cost of the raw material and direct labor used for the production of goods.
An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an on-going cost for running a product, business, or system.
Page: 1 2
Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…
The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…
The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…
The purpose of this research paper is to develop a marketing plan for the Thomson…
1. As applicable to other department managers, a human resources manager invigilates the departments and…
The purpose of the present article is to formulate a work allocation flow chart of…