EBIT (Earnings Before Interest and Tax)
EBIT, or Earnings Before Interest and Taxes, is an official business accounting measure used to assess the profitability of a company’s operations before interest and taxes are taken into account. The measure can be used to understand the performance of a given venture or project by analyzing operational costs relative to income generated. In procurement, EBIT can be used to determine the profit margin of a supplier before negotiating prices and terms, as well as for gauging overall efficacy of a particular process or product.
