This formula starts with the net income (profit after all expenses) and adds back interest and taxes to isolate the operating earnings. ABC Manufacturing Ltd. has an EBIT of ₹1,700,000 ...

EBIT stands for "earnings before interest and taxes." Investors evaluate a company's earnings before subtracting interest expenses and taxes because interest and taxes are non-operating expenses ...

Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this ...

Gross profit and EBITDA both show the profitability of a company but they do it in different ways. Know what goes into each before investing in a company's stock.