Earnings before interest and, taxes (EBIT)

Definition:

A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Shakeout

A dramatic change in market conditions that forces speculators to sell their positions, often at a loss.

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