Tuesday, February 17, 2009

Caren Explains EBIT

Before leaving Atlanta, I tried to explain the concept of "EBIT" or "Earnings Before Interest & Taxes" to some of my non-business-school-friends (mainly Ashley and Rachael). It is defined as:

An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income"


I use EBIT a lot in my new life as a student and I've tried to embrace EBIT as if it were, say, my favorite band. Look how much cooler EBIT is when it's not used just as financial jargon:

EBIT and Roeper -- famous movie reviewers?
The EBIT Brothers -- an excellent Appalachian band?
"EBIT Flow" -- a popular Pearl Jam song?
EBITza, Spain -- a party destination?

or

"EBIT, EBIT" says Kermit the Frog.

(It's not easy being green...)

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