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Earnings before interest and, taxes (EBIT) |
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Earnings before interest and, taxes (EBIT)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes.Earnings before interest and, taxes (EBIT) Similar MatchesTaxable earningsTaxable earningsThe amount of an individual's annual income on which tax is payable defined as:Taxable earnings = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the 'personal allowance' which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have Total Income of £19,000, and his Taxable Income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate) Normalised earningsNormalised earningsSee 'adjusted earnings'. Accounting earningsAccounting earningsEarnings of a firm as reported on its income statement. Earnings capEarnings capA term which relates to a person's final salary in an occupational pension scheme taken out on or after 1st June 1989 (or 14th March 1989 if the scheme was new at that time) and is the upper limit of earnings allowable under the scheme.The upper limit of net relevant earnings qualifying for tax relief in a personal pension plan, which in turn limits contributions. Earnings before interest after taxes (EBIAT)Earnings before interest after taxes (EBIAT)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest plus cash income taxes. Equivalent to EBIT minus cash taxes. Further Suggestionsearnings per shareRetained earnings Primary earnings per (common) share Earnings price ratio lower earnings limit earnings Earnings before taxes (EBT) Earnings retention ratio Earnings response coefficient upper earnings level price earnings ratio (P/E ratio) Earnings before interest, taxes, and depreciation (EBITD) Normalized earnings retained earnings Earnings band earnings Earnings yield Fully diluted earnings per shares net relevant earnings Earnings before interest, taxes, depreciation, and amortization (EBITDA) Quality of earnings earnings factor State Earnings Related Pension Scheme Earnings momentum price earnings growth factor |
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