Margin and profit

EBIT

Earnings before interest and tax: EBITDA after depreciation and amortisation.

Formula small numbers are statement lines

EBIT = EBITDA (line 33) − depreciation − amortisation
The short answer

EBIT is earnings before interest and tax: EBITDA minus depreciation and amortisation, the share of past investments in equipment, vehicles or software charged to the period. It sits close to the operating profit in annual accounts. A nouz statement stops one step earlier, at EBITDA, because those charges are accounting allocations rather than money the store spent that day.

Depreciation spreads the cost of something that lasts for years over the years it is used: a van bought for €30.000 and kept for five years costs the accounts €6.000 a year rather than €30.000 in the month it was paid for. Amortisation is the same idea for things you cannot touch, such as software you had built or a brand you bought. Neither is a payment. Both are the accountant's way of charging an old purchase to the periods that benefit from it.

That is why the nouz statement ends at EBITDA. Everything above it is money that moved, or will move, because of trading: goods, parcels, fees, ads, rent, salaries. Depreciation depends on year-end choices made with an accountant, such as how many years a van lasts, and folding it into a daily figure would make every day carry a share of an estimate. For a store that rents its warehouse and owns little more than laptops and shelving, the two figures sit close together anyway.

The rule shows up in one place in the product. The Other costs form, where a one-off like a repair or a lawyer is entered, asks you to leave out anything that lasts for years, like a van or shelving: that is an investment rather than a cost, EBITDA leaves it out, and it reaches EBIT through your accountant's depreciation instead.

Read the two together when a bank, an investor or a buyer asks. EBITDA says what trading earns before financing and accounting choices; EBIT says what is left once the equipment that made the trading possible has been paid for, slowly. A store with a fleet or warehouse machinery should watch both, and a store that rents everything can treat them as near neighbours. The gap between them is one reason a profit tracker and accounting software are not substitutes.

Where it lives in nouz. Not computed. The statement stops at EBITDA, and the Other costs form asks you to leave long-lived purchases out.

Questions

EBIT, answered.

What is the difference between EBIT and EBITDA?
EBITDA is profit before interest, tax, depreciation and amortisation. EBIT also subtracts depreciation and amortisation, the yearly share of past investments such as vehicles, equipment or software, so for a business that owns such things it is the smaller figure.
Why does the nouz P&L end at EBITDA?
Because everything on it is money that trading moves, booked to its own day. Depreciation is an allocation of past purchases decided at the year end with an accountant, so it belongs in the annual accounts, which is where EBIT is worked out.
Is EBIT the same as operating profit?
Close, and often used that way. Accounting frameworks draw the operating line slightly differently, for example around one-off gains, so for an exact figure use the operating result in your own annual accounts.

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