Ebit Finance Formula, also known as the Earnings Before Interest and Taxes or EBIT formula, is used in multiple business decisions related to finance. It is a measure of the company’s true profit before financing costs that may include interest expenses and tax-deductible items are subtracted. To calculate EBIT, you must add any income tax expenses, depreciation and amortization, non-cash revenue, non-cash charges, and other revenue to the company’s net income. The total sum is then divided by the company’s total assets to get a figure representing the profitability of the business. Essentially, the higher the EBIT calculation, the more profitable the company is considered to be.