Profit before interest and tax

(PBIT).

A measure of the operating profitability of a business, before taking account of the effects of either:

1. The chosen capital structure; or
2. Taxation.

The purpose of the PBIT measure is to facilitate comparability of underlying businesses, cleaned of any distortions caused by different capital structures or different tax positions.

See also

• Interest cover
• Net operating profit after tax
• Operating profit
• Return on capital employed