Google definitions are too difficult ...
2007-09-26 10:28:29 · 5 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
EBIT is Earnings Before Interest and Taxes --- This the bottom line of either profit or loss of a company with the Tax and Interest Expenses added back in. The reasoning behind this is that interest expenses are generally considered to be a direct result of financing decisions as opposed to operational decisions.
Gross Margin the percentage of profit in relationship to Revenues, but only with direct cost of Sales subtracted. They do not include indirect cost of sales like rent, professional fees, office supplies, officer salaries, office employee salaries.
2007-09-26 10:40:12 · answer #1 · answered by bkwrm006 2 · 1⤊ 0⤋
Profit Margin Vs Gross Margin
2016-11-16 05:26:20 · answer #2 · answered by ? 4 · 0⤊ 0⤋
EBIT = Earnings before Interest and Taxes. In accounting terms, EBIT is the operating revenue less the operating expenses (not including interest & taxes).
Gross Margin = Gross Income/ Net Sales * 100 = x% GM is expressed as a %.
Net Sales = Gross Sales - returns & discounts - allowances
Hope that helps.
2007-09-26 10:40:02 · answer #3 · answered by Michelle 3 · 0⤊ 0⤋
EBIT=Earnings Before Interest and Taxes
Gross Margin is all earnings, less cost of sales, but before any other expenses
2007-09-26 10:35:09 · answer #4 · answered by Mike 7 · 0⤊ 0⤋
gross is like the enite marginn everything profit.. losses.. etc.. bascially total cashflow.. profit is only wat you actually made minus expenses/operating cost
2016-03-13 05:59:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋