Definition
Earnings before interest and taxes (EBIT) is the profit measure before deducting interest and tax expenses. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Earnings before interest and taxes (EBIT)?” The useful answer is concrete: profit measure before deducting interest and tax expenses. A slide title is not an answer.
Common mistake
Using Earnings before interest and taxes (EBIT) as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Earnings
Company's profits after all expenses, taxes, and costs have been deducted.
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Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Profit measure that excludes interest, taxes, depreciation, and amortization.
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Earnings before taxes (EBT)
Company's profit before income tax expenses are deducted.
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Earnings call
Conference call where company executives discuss quarterly financial results.
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