Importance of EBIT for your company

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Therefore, if we continue with the previous example, we will add the depreciation and amortization amounts to the thousand euros and we will obtain our EBITDA.  EBIT is a vitally important indicator for your business. It measures a company's operating results and by leaving aside interest and tax expenses you can focus on the company's billing capacity. So, an investor can use this yardstick to detect how much money a corporation can produce in a given period. Additionally, if you are comparing different projects in different nations you can focus on billing capacity and leave aside the tax environment that can distract you from what is truly important.


In this way, with EBIT we can use EBIT to see Belarus WhatsApp Number the success of a company's core operations and not worry about the tax policies of the sector or the structure of the company. In other words, EBIT is a measure of the company's earnings potential, which determines the maximum value of the company. EBIT Advantages: Do you still have doubts about the usefulness of EBIT in the day-to-day life of the company? Let's look at some of its advantages below: Ease of calculation And we couldn't start any other way.





The reality is that few indicators are as simple to calculate as EBIT, since you only have to calculate the difference between the total income and the operating costs of the project, so all you have to do is look for a calculator to start working . Compare different divisions of the same company It is very important to analyze each of the divisions of the same company. On many occasions we find companies that own other businesses around the country and the entire world, that is, they are a conglomerate.