EBIT stands for____________________.

Earnings Before Investment and Taxes

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Earnings Before Interest and Taxes

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Earnings Before Income and Taxes

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Earnings Before Initial Capital and Taxes

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Solution

The correct option is B Earnings Before Interest and Taxes
Earnings before interest and taxes (EBIT) is an analyzing tool of a company's profitability. It can be calculated as revenue minus expenses excluding tax and interest. It also depicts the company's net income before income tax expense and interest expenses.

Formula :
EBIT= Revenue-COGS-operating expense
where COGS stands for the cost of goods sold

Thus the correct answer is B.

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