EBIT Solution

STEP 0: Pre-Calculation Summary
Formula Used
Earnings Before Interest and Taxes = Revenue-Operating Expense
EBIT = R-OPEX
This formula uses 3 Variables
Variables Used
Earnings Before Interest and Taxes - Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.
Revenue - Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.
Operating Expense - Operating Expense is an expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production.
STEP 1: Convert Input(s) to Base Unit
Revenue: 10000 --> No Conversion Required
Operating Expense: 1254 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
EBIT = R-OPEX --> 10000-1254
Evaluating ... ...
EBIT = 8746
STEP 3: Convert Result to Output's Unit
8746 --> No Conversion Required
FINAL ANSWER
8746 <-- Earnings Before Interest and Taxes
(Calculation completed in 00.004 seconds)

Credits

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Softusvista Office (Pune), India
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Bhilai Institute of Technology (BIT), Raipur
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7 Financial Metrics Calculators

Compound Annual Growth Rate
Go Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100
Customer Selling Price
Go Customer Selling Price = Cost Price+(Profit Margin Percentage*Cost Price)
Return on Invested Capital
Go Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital
Days Sales Outstanding
Go Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365
Days Payables Outstanding
Go Days Payables Outstanding = (Average Account Payables/Cost of Goods Sold)*365
EBIT
Go Earnings Before Interest and Taxes = Revenue-Operating Expense
Cost Plus Pricing
Go Cost Plus Pricing = Break Even Price*Profit Margin Goal

23 Financial Accounting Calculators

DuPont Analysis
Go Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)
Internal Rate of Return
Go Net Present Value = sum(x,0,Number of Periods,((Cashflow at End Period/(1+Internal Rate of Return)^x)))-Initial Investment
Net Operating Cycle
Go Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables)
Discount Lost
Go Discount Lost = (Discount Percentage/(100-Discount Percentage))*(365/(Final Payment Date-Last Discount Date))
Annual Equivalent Cost
Go Annual Equivalent Cost = (Asset Price*Discount Rate)/(1-(1+Discount Rate)^-Number of Periods)
Net Present Value
Go Net Present Value = sum(x,1,Time Period,(Cash Flow/(1+Internal Rate of Return)^x))
Annual Percentage Yield
Go Annual Percentage Yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1
Effective Yield
Go Effective Yield = 1+(Nominal Rate/Number of Payments Per Year)^(Number of Payments Per Year)-1
Depletion Charge per Unit
Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
Value of Stock
Go Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)
EBITDA
Go EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization
Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares
Operating Cash Flow
Go Operating Cash Flow = Earnings Before Interest and Taxes+Depreciation-Taxes
Discount Percentage
Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100
Residual Value
Go Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
Long term Debt to Equity ratio
Go Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund
EBIT
Go Earnings Before Interest and Taxes = Revenue-Operating Expense
Depletion Expense
Go Depletion Expense = Depletion Charge per Unit*Units Consumed
Shareholders' Equity given Total Assets and Liabilities
Go Total Shareholders' Equity = Total Assets-Total Liabilities
Discount Factor
Go Discount Factor = 1/(1*(1+Discount Rate)^Number of Periods)
Discount given Discount Rate and List Price
Go Discount = Discount Rate*List Price
Discount given List Price and Price Paid
Go Discount = List Price-Price Paid
List Price
Go List Price = Price Paid+Discount

EBIT Formula

Earnings Before Interest and Taxes = Revenue-Operating Expense
EBIT = R-OPEX

How to Calculate EBIT?

EBIT calculator uses Earnings Before Interest and Taxes = Revenue-Operating Expense to calculate the Earnings Before Interest and Taxes, EBIT (Earnings Before Interest and Taxes) is a measure of a firm's profit that includes all expenses except interest and income tax expenses. Earnings Before Interest and Taxes is denoted by EBIT symbol.

How to calculate EBIT using this online calculator? To use this online calculator for EBIT, enter Revenue (R) & Operating Expense (OPEX) and hit the calculate button. Here is how the EBIT calculation can be explained with given input values -> 8746 = 10000-1254.

FAQ

What is EBIT?
EBIT (Earnings Before Interest and Taxes) is a measure of a firm's profit that includes all expenses except interest and income tax expenses and is represented as EBIT = R-OPEX or Earnings Before Interest and Taxes = Revenue-Operating Expense. Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers & Operating Expense is an expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production.
How to calculate EBIT?
EBIT (Earnings Before Interest and Taxes) is a measure of a firm's profit that includes all expenses except interest and income tax expenses is calculated using Earnings Before Interest and Taxes = Revenue-Operating Expense. To calculate EBIT, you need Revenue (R) & Operating Expense (OPEX). With our tool, you need to enter the respective value for Revenue & Operating Expense and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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