how to calculate EBIT

[dimpy.handa]

Add all of the profits for the company over a one-year period. This means all total sales, all total stock options and all other monetary gains---except interest income---over the course of the previous year .
Add all of the operating costs of the business. Different companies have different operating costs, and it is important that a company keep exact records of all operating costs over the course of a year.
Subtract all the total operating costs from the total profits of the company to get the EBIT, or net operating income. For example, if a company made $2.4 million in profits, and spent $1.3 million on operating costs, its EBIT would be $1.1 million.

:SugarwareZ-046:

 

[Paramjeet_1988]

To calcualte the net cash flow after obtaining EBIT , remove the tax to be given to the authorities and the remaining quantity is called as net cash flow if we discount it with the opportunity cost then it is termed as discounted cash flow.

 

[vardhanvishnug]

ebit is nothing but earnings before income tax which means the earning which is calculated before paying the income tax of the company

 

[rosemarry2]

Add all of the profits for the company over a one-year period. This means all total sales, all total stock options and all other monetary gains---except interest income---over the course of the previous year .
Add all of the operating costs of the business. Different companies have different operating costs, and it is important that a company keep exact records of all operating costs over the course of a year.
Subtract all the total operating costs from the total profits of the company to get the EBIT, or net operating income. For example, if a company made $2.4 million in profits, and spent $1.3 million on operating costs, its EBIT would be $1.1 million.

:SugarwareZ-046:

Hey Buddy,

Please check attachment for Study on Financial Ratio Analysis - EBITDA Calculation, so please download and check it.