The financial ratio EBIT (Earnings Before Interest and Taxes) allows us to compare the financial performance of organisations – without considering their social and legal structures and commitments, their financial structure (interest on debt is not deducted) and their geographic location (taxes are not deducted). As measurements for the management of an organisation, EBIT and similar financial ratios, are misleading: they are merely orientation factors for the operational management – and just one of six central performance controls of an organisation.

By |2023-10-18T11:10:55+00:00October 18, 2023|Comments Off on EBIT

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