Thrid Party Share and Participations in EBIT?

Earnings Before Interest and Tax
Knowledge Center

Earnings Before Interest and Tax > Forum

New Topic

Ronald van de Munt
Director, Netherlands
Turning around the definition: Net Profit + Interest + Tax = EBIT. What about the third party share and income from participations? Include or exclude from EBIT? (...) Read more? Sign up for free

  Jaap de Jonge
Editor, Netherlands

Does EBIT Include Income from Investments in Other Firms?

EBIT is a measure of a company’s profitability. EBIT can be calculated as Operating Income (=Revenue minus Operating Expenses) plus Non-Operating Income.
- Operating expenses include cost of goods sold, depreciation and amortization, selling, general and administrative expenses and other expenses.
- Non-operating income is the part of a company’s income that was not generated by the company’s core business. That may include income from investments, dividend income etc. Or as you call it income from third party shares and income from participations.

Note that if a company does not have any non-operating income, than EDIT is equal to operating income.


More on Earnings Before Interest and Tax
Thrid Party Share and Participations in EBIT?
EBIT Before of After End of Year
What is Return on Sales? Definition
EBIT and DIrect and Indirect Expenses
EBIT and Operating Leverage
🔥What is Consolidated Operating Income (COI)?
Special Interest Group

Are you interested in Earnings Before Interest and Tax? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Earnings Before Interest and Tax
Knowledge Center


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 5-3-2021. All names ™ of their owners.