The Full Form of PDIT is Profit before interest and tax.
Earnings before interest and taxes (EBIT) is an indicator of a company’s profitability. EBIT can be calculated as revenue minus expenses excluding tax and interest. EBIT is also referred to as operating earnings, operating profit, and profit before interest and taxes.
KEY TAKEAWAYS
- EBIT (earnings before interest and taxes) is a company’s net income before income tax expense and interest expenses are deducted.
- EBIT is used to analyze the performance of a company’s core operations without the costs of the capital structure and tax expenses impacting profit.
- EBIT is also known as operating income since they both exclude interest expenses and taxes from their calculations. However, there are cases when operating income can differ from EBIT.
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