Profit before interest and tax: Difference between revisions
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A measure of the operating profitability of a business, before taking account of the effects of either: | A measure of the operating profitability of a business, before taking account of the effects of either: | ||
#The chosen capital structure; or | |||
#Taxation. | |||
The purpose of the measure | 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 == | == See also == | ||
* [[Capital structure]] | |||
* [[Earnings]] | |||
* [[Gross profit]] | |||
* [[Interest cover]] | * [[Interest cover]] | ||
* [[Net operating profit after tax]] | * [[Net operating profit after tax]] | ||
* [[Net profit]] | |||
* [[Operating profit]] | * [[Operating profit]] | ||
* [[Return on capital employed]] | * [[Return on capital employed]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 23:22, 30 December 2020
(PBIT).
A measure of the operating profitability of a business, before taking account of the effects of either:
- The chosen capital structure; or
- 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.
