Is gross profit the same as EBIT?

Updated on Financial 2024-03-12
16 answers
  1. Anonymous users2024-02-06

    No, total profit = operating profit + non-operating income.

    Non-operating expenses, EBIT = net profit of the enterprise + interest expense paid by the enterprise + income tax paid by the enterprise, which can also be expressed as EBIT = marginal contribution.

    Fixed Operating Costs = Sales Revenue - Variable Costs - Fixed Costs.

  2. Anonymous users2024-02-05

    It's not quite the same. 1. EBIT is a profit without deducting interest or income tax, that is, the profit before paying income tax without considering interest, which can also be called profit before interest and tax. Earnings before interest and taxes, as the name suggests, refers to the profit before interest and income taxes are paid.

    2. The total profit is the surplus of a company after deducting discounts, cost consumption and business tax in its operating income, which is what people usually call profit, and the relationship between it and operating income is: total profit = operating profit + non-operating income - non-operating expenses.

    3. The relationship between total profit and EBIT is that the former includes the interest expense paid by the enterprise, and the latter includes the interest expense paid by the enterprise.

  3. Anonymous users2024-02-04

    EBIT is a profit that does not deduct interest or income tax, that is, the profit before income tax without considering interest, and the total profit is the balance of EBIT minus the interest expense payable by the enterprise, and the total profit is equal to the EBIT minus the interest expense payable by the enterprise, and the calculation formula is as follows:

    Total profit = EBIT - interest expense paid by the business.

    Or: Total profit = operating profit + non-operating income - non-operating expenses.

    Operating profit = operating income - operating costs - business taxes and surcharges - period expenses - asset impairment loss + fair value change gain - fair value change loss + net investment income.

    EBIT = net profit of the enterprise + interest expense paid by the enterprise + income tax paid by the enterprise.

    Or: EBIT = Contribution Margin - Fixed Operating Costs = Sales Revenue - Variable Costs - Fixed Costs.

  4. Anonymous users2024-02-03

    To put it simply, EBIT refers to all the profits that a company obtains, without deducting any profits and taxes that need to be paid. Total profit refers to all the profits made by an enterprise through operation in a certain period of time.

    EBIT refers to the profit of the enterprise before excluding financial expenses, if the enterprise has a large number of bank deposits, the financial expenses will be negative, it offsets the operating expenses, but it is not the operating income, so when calculating the actual operating profit of the enterprise, it should be excluded.

    EBIT change = change in earnings per common share Financial leverage factor.

    EBIT change = operating leverage coefficient and volume change in sales.

    The total profit is the surplus after deducting the cost consumption and business tax from the operating income, which is commonly referred to as profit. He included financial charges.

    Total profit = operating profit + non-operating income - non-operating expenses.

    Operating profit = operating income - operating costs - business taxes and surcharges - period expenses - asset impairment loss + fair value change gain - fair value change loss + net investment income.

  5. Anonymous users2024-02-02

    It's not the same; Total profit refers to the sum of the company's income after deducting costs and expenses, plus non-operating income, minus non-operating expenses. Profit before interest is the sum of the total profit plus the interest expense paid by the business.

  6. Anonymous users2024-02-01

    Gross profit is not the same as EBIT in that interest is included in the gross profit, and EBIT is not deducted from interest.

  7. Anonymous users2024-01-31

    EBIT = total profit + interest in financial expenses, total profit = operating income + net investment income + non-operating income - operating costs - business taxes and surcharges - operating expenses - administrative expenses - financial expenses - non-operating expenses.

  8. Anonymous users2024-01-30

    Gross profit and EBIT are certainly not the same.

  9. Anonymous users2024-01-29

    Hello, it can be said that it is the same.

  10. Anonymous users2024-01-28

    1. Profit before interest and income tax is profit without deducting interest or income tax, that is, profit before income tax without considering interest;

    2. The total profit is the balance of the EBIT minus the interest expense payable by the enterprise;

    3. The total profit is equal to the EBIT minus the interest expense payable by the enterprise, and the calculation formula is that the total profit = EBIT - the interest expense paid by the enterprise.

    Operating profit is the surplus of a company's operating income after deducting discounts, cost consumption and business tax, which is commonly referred to as profit, and the relationship between it and total profit is: total profit = operating profit + non-operating income - non-operating expenses. Where:

    Operating Profit = Operating Income Operating Costs Taxes and Surcharges Period Expenses Asset Impairment Losses - Credit Impairment Losses + Fair Value Change Gains Fair Value Change Losses + Net Investment Income + Asset Disposal Gains + Other Income + Net Exposure Hedging Income.

    Non-operating income mainly includes gains on disposal of non-current assets, gains on the exchange of non-monetary assets, gains on intangible assets, gains on debt restructuring, gains on business combinations, gains on inventory gains, payables that cannot be paid due to the debtor's reasons, subsidies, additional refunds for education fees, penalty income, donation gains, etc. The growth rate of total profit reflects the growth rate and trend of total profit, and its formula is: annual profit growth rate = annual profit growth amount Total profit of the previous year multiplied by 100%.

    Among them, the annual profit growth = the total profit of the current year - the total profit of the previous year, the index should be combined with the sales (business) growth rate index to analyze, in order to analyze whether the profit of the enterprise with the growth of sales (turnover) is growing synchronously, if the two do not grow synchronously, especially when the growth of profit lags behind the growth of sales (turnover), it is necessary to analyze the cost control of the enterprise.

  11. Anonymous users2024-01-27

    EBIT refers to the total amount of pre-tax profit and interest expense realized by an enterprise in the current year. Profit before tax refers to the profit before deducting the income tax payable, that is, the total profit. EBIT = Sales Revenue - Variable Costs - Fixed Costs = Net Profit (1 - Income Tax Rate) + Interest Expense = Net Profit + Income Tax Expense + Interest Expense = Total Profit + Interest Expense, Total Profit = EBIT - Interest = Net Profit + Income Tax Expense = Operating Profit + Subsidy Income + Non-Operating Income - Non-Operating Expenses.

    Net profit refers to the total profit of the enterprise in the current period minus the amount of income tax, that is, the after-tax profit of the enterprise. Income tax refers to the tax calculated and paid to the state by the enterprise on the total amount of profits realized in accordance with the standards stipulated in the income tax law. It is a deduction item from the total profit of the enterprise.

    The company's profit retention after paying income tax in accordance with the provisions of the total profit is also known as after-tax profit or net profit. The amount of net profit depends on two factors, one is the total profit, and the other is the income tax expense.

    What about interest income in EBIT?

    1. Earnings before interest and taxes (EBIT) reflects the profit before income tax created by the funds provided or invested by creditors and shareholders.

    2. Therefore, in a strict sense, the relevant interest expense cannot be deducted from interest income when calculating EBIT.

    3. The reason is that the relevant interest income is also generated by the funds provided or invested by creditors and shareholders, that is, it should be part of the EBIT.

    Legal basis: Interim Regulations of the People's Republic of China on the Administration of Tax Collection Article 6 Any taxpayer who is engaged in production and business operation, implements independent economic accounting, and is approved by the administrative department for industry and commerce to start a business shall apply to the local taxation authorities for tax registration within 30 days from the date of obtaining the business license. Other units and individuals with tax liabilities shall, with the exception of those who are not required to go through tax registration in accordance with the provisions of the tax authorities, declare to the local tax authorities for tax registration within 30 days from the date of becoming statutory taxpayers in accordance with the provisions of the tax laws and regulations.

  12. Anonymous users2024-01-26

    1. The definition is different

    1. Net profit refers to the total profit of the enterprise in the current period minus the amount of income tax, that is, the after-tax profit of the enterprise.

    2. EBIT can also be called pre-interest and pre-tax profit, which is commonly said to be profit without deducting interest or income tax, that is, profit before income tax without considering interest.

    3. Total profit refers to the final financial results achieved by an enterprise through production and business activities in a certain period of time. The total profit of an industrial enterprise is mainly composed of two parts: sales profit and non-operating net income and expenditure (non-operating expenses offset profits).

    Second, the calculation formula is different:

    1. Net profit = total profit - income tax expense.

    2. EBIT = net profit of the enterprise + interest expense paid by the enterprise + income tax paid by the enterprise.

    3. Total profit = operating profit + non-operating income - non-operating expenses.

    3. For example, distinguish the difference between the three: an enterprise has an operating income of 200,000 yuan, a total cost of 150,000 yuan, of which the interest expense under the financial expenses is 10,000 yuan, and the income tax rate is 25%.

    1. Its net profit = (200000 150000) * (1 25%) = 37500;

    2. EBIT = 200,000 (150,000-10,000) = 60,000;

    3. Total profit = net profit + income tax expense = 37500-(200000 150000)*25%=25000;

  13. Anonymous users2024-01-25

    Because EBIT = net profit of the enterprise + interest expense paid by the enterprise + income tax paid by the enterprise, and the net profit of the enterprise = total profit - income tax paid by the enterprise, the total profit obtained through simultaneous transfer = EBIT - interest expense.

    Total profit = operating profit + non-operating income - non-operating expenses.

    Operating margin before interest and taxes = (net profit + income tax + financial expenses) Operating income.

    Profit from the sale of business in Yingqi Town = operating income Operating costs Business taxes and surcharges Period expenses Asset impairment loss + fair value change gain Fair value change loss + net investment income.

  14. Anonymous users2024-01-24

    The interest earned multiple (interest protection multiple) reflects the degree to which profitability guarantees the repayment of debts. Among them: total EBIT, total profit, interest expense, net profit, income tax, interest expense [Note].

    1) The interest earned multiple not only reflects the size of the company's profitability (other factors remain unchanged, the higher the indicator, the greater the EBIT, that is, the greater the profitability), but also reflects the degree to which the profitability guarantees the repayment of the due debt.

    2) In general, the higher the interest earned multiple, the stronger the long-term solvency of the enterprise. Internationally, it is generally considered that this indicator is more appropriate when it is 3. In the long run, if you want to maintain normal solvency, the interest protection ratio should be at least greater than 1.

    3).Interest-bearing debt ratioThe interest-bearing debt ratio refers to the ratio of the total interest-bearing liabilities to the total liabilities of the enterprise at a certain point in time, reflecting the proportion of interest-bearing liabilities in the liabilities of the enterprise, and to a certain extent, reflecting the future debt repayment (especially interest repayment) pressure of the enterprise. It is calculated as follows:

    Total interest-bearing liabilities Short-term borrowings Long-term liabilities due within one year Long-term borrowings Bonds payable Interest payable.

    Legal basis: Article 28 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases provides that if the interest rate of the previous period does not exceed 24% per annum, the amount stated in the re-issued credit certificate may be recognized as the principal of the later loan after the principal and interest of the previous loan are settled; The interest on the excess part cannot be included in the principal amount of the subsequent loan.

  15. Anonymous users2024-01-23

    EBIT = total profit + interest in financial expenses, total profit = operating income + net investment income + non-operating income - operating costs - business taxes and surcharges - operating expenses - administrative expenses - financial expenses - non-operating expenses.

  16. Anonymous users2024-01-22

    Total profit and EBIT are not the same, total profit = operating profit + non-operating income - non-operating expenses, positive profit before interest and taxes = net profit of the enterprise + interest expense paid by the enterprise + income tax paid by the enterprise, which can also be expressed as EBIT = marginal contribution - fixed operating costs = sales revenue - variable costs - fixed costs.

Related questions
11 answers2024-03-12

Judging from the **, this peace buckle of yours is jadeite. In the discipline of jewelry and jade, "jade" and "jade" are two different concepts, jade contains jadeite, and jadeite is only one of the jade. In the understanding of the jade industry or some consumers, "jade" is equal to a specific jade variety, some people will commonly refer to jadeite as "jade", and some people will refer to Hetian jade as "jade". >>>More

25 answers2024-03-12

The two are completely different, not something that can be explained in one or two sentences, and SLR is not easy to play. It takes a long time to master the correct **, and you have to pay attention to hand tremor, white balance, aperture, **compensation or something, and more. DC's functional SLR is basically there, but most of them don't support video, but I seem to have heard that some machines now have them, but I haven't seen them. >>>More

16 answers2024-03-12

Do not eat spoiled spoilage.

It is recommended to have a reasonable and nutritious diet and not be picky and picky. >>>More

10 answers2024-03-12

Of course it's exactly the same, because tomatoes (or tomatoes) are both fruits and vegetables (you know that), hehe. >>>More

32 answers2024-03-12

Teach you the difference between an IOU and an IOU.