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EBIT vs. EBITDA

EBIT vs. EBITDA

Decoding Business Profitability

Feb 13, 2025
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EBIT vs. EBITDA
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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 …

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