Earnings before interest and taxes
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Search complete. 304 mentions across 74 episodes found for "Earnings before interest and taxes".
Oct 30, 2026
speaker_1UNKNOWN
Sorry, I missed something on the cash flow to the firm.
speaker_1UNKNOWN
After tax-advancing income and on the previous time, it's EBITS.
Aswath DamodaranHOST
To me, after-tax operating income and EBIT times 1 minus T, I use them interchangeably.
Aswath DamodaranHOST
So EBIT is earnings before interest and taxes.
speaker_0NARRATOR
Tax burden equals net income divided by pre-tax income, which is one minus the effective tax rate.
speaker_0NARRATOR
Interest burden equals pre-tax income divided by EBIT, earnings before interest and taxes.
speaker_0NARRATOR
EBIT margin equals EBIT divided by revenue.
speaker_0NARRATOR
A burden is the share you keep.
speaker_0NARRATOR
The tax burden is the share of pre-tax profit kept after tax, and the interest burden is the share of EBIT, left after interest.
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Both are below 1 in the usual case, and higher is better.
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R-O-E equals tax burden times interest burden times EBIT margin times asset turnover times leverage.
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The order spells TI-L, tax, interest, EBIT margin, asset turnover, leverage.
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In every case, revenue is the denominator.
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One note, EBIT, earnings before interest and taxes, is often used as a shortcut for operating income.
speaker_0NARRATOR
But the two differ when there are non-operating items such as investment gains.
speaker_0NARRATOR
So be consistent.
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Profit before interest belongs to everyone who funded the assets, so divide it by assets, or by debt plus equity.
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Profit after interest belongs to the owners, so divide it by equity.
speaker_0NARRATOR
Operating ROA, or operating return on assets, is EBIT divided by average total assets.
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Return on invested capital, or ROIC, takes the EBIT after tax and divides it by the average of all the money in the business, short-term debt, long-term debt, and equity.
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The example is, harbor tools over three years, revenue grows by nearly a quarter, cost of sales grows by more than that, and operating expenses rise too.
speaker_0NARRATOR
EBIT, earnings before interest and taxes, ends the three years almost exactly where it started.
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Vertical first.
speaker_0NARRATOR
By year three, cost of sales takes a bigger slice of revenue, about 63%, up from 60% in the first two years.
speaker_0NARRATOR
So the EBIT margin shrinks from 15% to a little over 12.
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Now horizontal, with year one as the base.
speaker_0NARRATOR
Cost of sales is up about 29% on year one.
speaker_0NARRATOR
EBIT is barely above where it started, up only about 1%.
Lee OdessHOST
Sales were $4.08 billion, up 7% and 4% organically.
Lee OdessHOST
EBIT was up 11% to $710 million organically.
Lee OdessHOST
And the EBIT margin hit 17.4%, up 60 basis points.
Lee OdessHOST
EPS was up 14%.
Lee OdessHOST
The Americas grew 6% organically.
Lee OdessHOST
Q3 sales went from 3.74 billion in 2024 to 3.81 billion in 2025 to 4.08 billion today.
Lee OdessHOST
That's Q3 organic growth going from flat to 3% to 4%, which makes seven straight quarters of organic growth.
Lee OdessHOST
The Q3 EBIT margin moved from 16.7% to 16.8% to 17.4%, so trending in the direction that they would want it.
Jess Von BankGUEST
Great, fantastic.
Jess Von BankGUEST
Only 30% of organizations say they're seeing any impact whatsoever to EBIT.
Jess Von BankGUEST
And most of those aren't really able to attribute it to AI.
Jess Von BankGUEST
They're just
Jess Von BankGUEST
because of some of their AI initiatives.
Jess Von BankGUEST
The 6% number is the one I land on most often.
Jess Von BankGUEST
6% who are reporting any impact to EBIT whatsoever attributable to AI are pursuing growth and innovation, not productivity hacks and not efficiency vanity metrics.
Jess Von BankGUEST
In other words, don't make people faster, incrementally faster doing work as they already know how to do it, but actually change the company, pursue growth and innovation.
Matt SnodgrassHOST
So we're seeing Q1 FY27 same-store supermarket sales growth just 2.7% that is well below Woolies 6.9% food sales growth reported earlier this week.
Matt SnodgrassHOST
The company also warned that rising fuel costs will dent first-half profits with first-half supermarkets EBIT expected to be in line with the prior corresponding period.
Matt SnodgrassHOST
We're seeing a bunch of analyst commentary across the wire today, but definitely a downgrade there.
Matt SnodgrassHOST
Operating leverage certainly not what they thought it would be, given the higher fuel costs that is feeding into their bottom line there.
Erik AbrahamssonHOST
Then, other operating expenses are deducted such as wages, transportation, utilities and depreciation.
Erik AbrahamssonHOST
Now we've calculated the operating income, or the EBIT, which stands for earnings before interest and taxes.
Erik AbrahamssonHOST
If we remove interest payments on debt and let the government have their slice of the cake, and we remove the before because now it's after, we end up with earnings or net income.
Erik AbrahamssonHOST
The balance sheet.
speaker_4HOST
It doesn't account for tax, capital expenditures, depreciation, loans, or mortgages.
speaker_4HOST
Where traditional companies use EBIT, real estate businesses use NOI.
speaker_4HOST
When we look at public storage's operating income of its self-storage facilities, we see some really amazing margins, the kind of juicy double-digit gross margins that SaaS tech companies boast about.
speaker_4HOST
For public storage, the cost to operate self-storage facilities, counting payroll, property managers, repairs, maintenance, marketing, advertising, and property taxes combined, makes up just a third of all the income they bring in.
DeLoss JahnkeHOST
Earnings before interest and taxes at $2.66 billion.
DeLoss JahnkeHOST
That was about a quarter billion better than expected.
DeLoss JahnkeHOST
Full year EBIT guidance is now between $10.5 to $11 billion.
DeLoss JahnkeHOST
Ford also sees commodity headwinds approaching $2.5 billion year over year.
DeLoss JahnkeHOST
A couple of things, whether that's the price of steel or the price of copper.
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