Operating Profit EBIT, or Earnings Before Interest and Tax, is a key business metric used to measure financial performance. It’s an important indicator of a company’s profitability since it reflects profits made from its core operations, without the influence of income not related to the core business such as interest earned on investments or dividends. EBIT measures how successful a company is in generating operating profits that can then be used to fund further growth or pay dividends to shareholders. By tracking EBIT, businesses can make better financial decisions and ensure that they remain profitable over time.