Earnings Before Taxes

There are several ´Earnings Before..´ ratios and acronyms:

EBT = Earnings Before Taxes;
EBIT = Earnings Before Interest and Taxes;
EBIAT = Earnings Before Interest after Taxes;
EBITD = Earnings Before Interest, Taxes and Depreciation;
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization.

Where:

Earnings = operating and non-operating profits (eg interest, dividends received from other investments.

Depreciation is the non-cash charge to the balance sheet which is made in writing off an asset over a period.

Amortisation is the payment of a loan in instalments.

Updated On: 09.10.04