Asked by Ashly De Jesus on May 16, 2024
Verified
EBIT (earnings before interest and taxes)is the earnings measure designed to provide information on operational performance.
Operational Performance
Evaluation of an organization's effectiveness in producing its goods or services, considering efficiency and productivity.
EBIT
EBIT, an indicator of corporate earnings, captures the profit of a company by including all costs except for those related to interest and taxes.
- Comprehend the operational performance metrics, including EBIT and its significance.
Verified Answer
AS
Ashley SpeckMay 21, 2024
Final Answer :
True
Explanation :
EBIT is calculated by subtracting operating expenses from revenue and is considered a more accurate measure of a company's operational performance than net income, which includes interest and taxes.
Learning Objectives
- Comprehend the operational performance metrics, including EBIT and its significance.