EBIT
A company's profit before interest and taxes, meaning the result from its actual business.
In short
As of 8 October 2026EBIT (earnings before interest and taxes) is a company's result before interest and taxes. It shows what the core business earns regardless of financing and tax rate. Dividing EBIT by revenue gives the EBIT margin. With 10 billion euros of revenue and 1.5 billion euros of EBIT, the margin is 15 %.
EBIT stands for earnings before interest and taxes. It shows what the operating business earns before interest on debt and taxes are deducted. The starting point is revenue, minus all costs of running the business.
Because financing and taxes are left out, companies with different debt levels or from different countries are easier to compare. The EBIT margin (EBIT divided by revenue) shows how profitable the business is. A high debt-to-equity ratio later eats part of EBIT through interest.
Example: revenue 10 billion euros, EBIT 1.5 billion euros. The EBIT margin is 15 %. You will find EBIT in quarterly results and on the company pages under stocks.
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As of 8 October 2026 · Educational content, not investment or tax advice.