Understand what EBIT is and how it works?
Just like Net profit after tax (NPAT), there are not important numbers than Earnings Before net Interest and Tax (EBIT). It is surprising that there are a number of companies list on exchanges around the world. It does not make money and often they are of little interest to investors. EBIT is calculate by taking the earnings (before significant items and extraordinary items) before net interest has been deduct. Before the income tax obligation on earnings has been deduct. Net interest is the total interest paid on borrowings (or borrowing…
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