Earnings Before Interest and Taxes . A measure of a company's earning power from ongoing operations , equal to earnings before deduction of interest payments and income taxes . EBIT excludes income and expenditure from unusual, non-recurring or discontinued activities . In the case of a company with minimal depreciation and amortization activities, EBIT is watched closely by creditors , since it represents the amount of cash that such a company will be able to use to pay off creditors. also called operating profit.
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operating income degree of operating leverage (DOL)
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