Like EBIT, EBITDA is used by investors to better evaluate a company's performance without factoring non-cash items such as depreciation and amortization, which are accounting decisions. Use Caution ...

Like EBIT, EBITDA is used by investors to better evaluate a company's performance without factoring non-cash items such as depreciation and amortization, which are accounting decisions.

Therefore, the easiest way to determine EBIT would be to take the company's net income of $177,000, and add the interest expense of $14,000, resulting in EBIT of $191,000.