EBIT can be calculated in two ways: For example, in the simplified income statement below, taxes are not listed as an expense. 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. The formula for EBIT is: EBITDA = Revenue − Expenses EBITDA margin is a measurement of an organization's earnings before interest, taxes, depreciation, and amortization as a proportion of the total revenue that it earned. EBIT-EPS (earnings before interest and taxes - earnings per share) calculations are important for all publicly traded companies. This analysis helps businesses decide on the best options to raise money. Companies usually have three choices: secure a loan (debt financing), issue preferred stock (with a stated interest