oboloo Glossary

Adjusted Ebit Formula

oboloo Glossary

Adjusted Ebit Formula

Adjusted EBIT (earnings before interest and taxes) is a financial formula used to measure an entity’s profitability in terms of its operations. It strips out non-operating costs and investments—such as taxes, debt expenses, and other items not directly related to core business activities—to show a more accurate picture of how well a company or project is performing in terms of generating profit from core activities. Put simply, adjusted EBIT helps to paint a clearer picture of exactly how successful a business venture is.