It is an indicator analyzed especially by banks, because

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when we say "taxes and fees", we mean the profit tax or the micro-enterprise tax. Depending on these types of expenses that we subtract from income, we will obtain the following indicators: EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) EBITDA is profit before deducting depreciation, interest and income tax expense. It is calculated by subtracting operating expenses from Gross Profit. Calculation formula: EBITDA = Revenues – COGS – operating expenses It is an indicator analyzed especially by banks, because it shows the ability of the business to produce money – with the help of EBITDA , the cash flow from operations can be estimated.


Operating profit (EBIT) Operating Profit or EBIT (Earnings before Interest and Taxes) is calculated British Student Phone Number List by subtracting operating expenses and depreciation expenses from Gross Profit . Or, more simply, we subtract depreciation expenses from EBITDA . Calculation formula: Operating Profit (EBIT) = Revenue – COGS – operating expenses – depreciation Operating profit is that profit from which interest and taxes have not yet been deducted. Interest expense and taxes are those factors that the firm cannot control. All other expenses (which have been subtracted from revenues, yielding Operating Profit) are costs that the entrepreneur can control. We'll show a bit below what tracking this indicator helps with. Net Profit (EAT) Net profit or EAT (Earnings After Tax) is calculated as follows: from EBT (Profit before tax) we subtract the profit tax and get the net profit .




This is the profit that can be distributed as dividends or reinvested. Calculation formula: Net Profit (EAT) = Revenue – COGS – operating expenses – depreciation – interest – tax EBT (Profit Before Tax) EBT (Earnings Before Tax) is that indicator that in Romania we use under the name of gross profit. It is basically the Operating Profit from which we subtracted the interest. Or, to put it another way, it is profit before tax. Calculation formula: Profit before tax (EBT) = Revenue – COGS – operating expenses – depreciation – interest How is profit & tax calculated? The profit calculation is performed monthly by the company's accountant. The following is recorded in the company's accounting: all income – invoices issued and other types of income all expenses – invoices received from suppliers, expenses with salaries,