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Earnings Before Interest and Tax (EBIT)

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Earnings Before Interest and Tax (EBIT)

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Indicates the company's profitability. It is also referred to as "operating earnings", "operating profit" and "operating income".

EBIT = Revenue - Operating Expenses

See also the Income Statement.

EBIT (Operating profit)		Income Tax
		NOPAT		Cost of assets
		NOPAT		Value creation

NOPAT : Net Operating Profit After Tax

Cost of assets = Assets x Cost of Capital (WACC)

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