Calculation about EBIT?

Question

Calculation about EBIT.
I know EBIT= Net income-Op. exp.
Can I use
EBITA+Dep+Amortization= EBIT ?

Thank you,

Answer 1

I presume you mean EBITDA and not EBITA?

EBIT is an indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income", as you can re-arrange the formula to be calculated as follows:

EBIT = Revenue - Operating Expenses

In other words, EBIT is all profits before taking into account interest payments and income taxes. An important factor contributing to the widespread use of EBIT is the way in which it nulls the effects of the different capital structures and tax rates used by different companies. By excluding both taxes and interest expenses, the figure hones in on the company's ability to profit and thus makes for easier cross-company comparisons.

EBIT was the precursor to EBITDA, which takes the process further by removing two non-cash items from the equation (depreciation and amortization). So if you wish to work backwards from EBITDA to EBIT, yes, you can add back depreciation and amortization to EBITDA to get EBIT.

EBITDA = Revenue - Expenses (excluding tax, interest, depreciation and amortization)

Answer 2

Ebit Calculation

Answer 3

This Site Might Help You.

RE:
Calculation about EBIT?
Calculation about EBIT.
I know EBIT= Net income-Op. exp.
Can I use
EBITA+Dep+Amortization= EBIT ?

Thank you,

Answer 4

Ebit Formula