Work out ebit instantly with clear inputs, formula shown and shareable results.
EBIT is earnings before interest and tax — the profit a business generates from trading, before financing structure and tax jurisdiction distort the picture. Revenue less cost of goods sold gives gross profit; deducting operating expenses leaves EBIT.
EBIT
EBIT = Revenue - COGS - Operating expenses
EBIT margin
EBIT margin % = EBIT / Revenue x 100
In practice they are used interchangeably. They diverge only when a company reports material non-operating income, which sits inside EBIT but outside operating profit.
Both depend on how the company is financed and where it is taxed, not on how well it trades, so removing them makes two businesses comparable.