EBIT, or earnings before interest and taxes, is a way of measuring a business’s profitability. It’s calculated by taking a company’s net income and subtracting the expenses associated with producing the goods or services it sells. By understanding EBIT, businesses can effectively assess their operations and make informed decisions about how to allocate resources. On the other hand, operating profit includes not only EBIT but also one-off sales, items like depreciation and amortization, as well as any changes in inventory and accounts receivable. This measure is typically more comprehensive than EBIT, giving businesses an even bigger picture of their overall profitability and performance.