![]() ![]() This is because no one has been “paid” yet! These metrics are both BEFORE Interest Expense, Taxes, etc., since they start with Operating Income on the Income Statement: Here are example calculations for EBIT vs EBITDA for Target and Best Buy:ĮBIT and EBITDA are available to Equity Investors, Debt Investors, Preferred Stock Investors, and the Government. Net Income is just Net Income from Continuing Operations at the very bottom of the Income Statement (“Net Income to Common” or “Net Income to Parent” sometimes). How to Calculate EBIT vs EBITDA vs Net IncomeĮBIT (Earnings Before Interest and Taxes) is Operating Income on the Income Statement, adjusted for non-recurring charges.ĮBITDA (Earnings Before Interest, Taxes, and Depreciation & Amortization) is EBIT, plus D&A, always taken from the Cash Flow Statement.
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