EBIT vs. EBITDA

Decoding Business Profitability

Key Takeaways

• EBIT and EBITDA offer different lenses on profitability: Both EBIT (Earnings Before Interest and Taxes) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) help you to understand a company's profitability by excluding the cost of debt and taxes. However, EBITDA goes a step further by also excluding depreciation and …