Ebit, or earnings before interest and tax (EBIT), is a financial measure that looks at a company’s profitability before deducting interest and taxes. This measure helps investors and analysts assess the underlying operating performance of the firm without the influence of financing decisions and taxation strategies. Ebitda (earnings before interest, taxes, depreciation, and amortization), on the other hand, takes into account these factors in addition to amortizing some of the company’s assets. It’s a more holistic look at a company’s profitability which often leads to more accurate and reliable assessments of a company’s financial health.