Earnings before interest and tax -- EBIT -- is a company’s operating profit i.e. its gross profits less operating expenses. It represents the earnings power of its core operations (revenues less cost of goods sold and operating expenses). To fine-tune the numbers, analysts might exclude non-recurring or extraordinary revenues as well as interest received from investments in order to garner a picture of true operating revenues. Excluding tax expenses facilitates comparison between companies in different jurisdictions with varying tax codes.

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