The calculation formula of earnings before interest and tax is:
Earnings before interest and tax = net profit+interest expense+income tax expense.
Among them, net profit refers to the net profit obtained by the enterprise after deducting various expenses, including the balance of operating income after deducting operating costs, taxes and surcharges, sales expenses, management expenses, financial expenses and other expenses; Interest expense refers to the loan interest and other expenses paid by the enterprise; Income tax expense refers to the income tax expense that an enterprise should pay.
When calculating earnings before interest and tax, we need to pay attention to several issues:
1. The calculation of net profit needs to comprehensively consider various expenses, including operating income, costs, taxes and fees, sales expenses, management expenses and financial expenses. , and need to be calculated according to the provisions of the financial statements.
2. Interest expense refers to the loan interest and other expenses paid by the enterprise, which need to be calculated according to the actual situation of the enterprise.
3. Income tax expenses refer to the income tax expenses that should be paid by enterprises, calculated according to the provisions of the state tax authorities and disclosed in the financial statements.
In practical application, earnings before interest and tax is a very important financial indicator, which can reflect the operating ability and profitability of enterprises. Through the calculation and analysis of the income before interest and tax, enterprises can understand their own financial situation and formulate corresponding business strategies in order to obtain better business benefits and financial returns.