A crucial metric in assessing a company's core operating performance by excluding the effects of finance and tax expenses from operating profit calculations.
EBIT, an abbreviation for Earnings Before Interest and Taxes, represents a company's profit as indicated on the profit and loss account before the deduction of interest and tax expenses. This figure is instrumental in calculating multiple financial ratios and facilitates more straightforward comparisons between companies.
Interest cover, also known as the fixed-charge-coverage ratio, is a financial metric used to assess a company’s ability to meet its interest obligations from its earnings before interest and tax (EBIT).
Financial metrics used to measure a company's ability to generate profit relative to other key variables, such as sales, assets, or equity.
A crucial financial ratio that measures a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses for the same period.
