In the world of finance, a term that often emerges as a vital measure of a company’s financial health is EBIT, or Earnings Before Interest and Taxes. This metric, sometimes referred to as ...

The simplest way to calculate interest expense is to multiply ... then its interest expense is $100 million multiplied by 0.05, or $5 million. EBIT stands for "earnings before interest and taxes." ...

Operating income is often used interchangeably with the acronym EBIT, which stands for earnings before interest and tax, and that is the reason EBIT margin is often referred to as operating margin.