What is the full form of EBIT?

Option 1 -> Earning Before Income Tax - This is incomplete as EBIT accounts for both interest and tax, not just income tax.

Option 2 -> Earning Before Interest and Tax - This correctly represents EBIT, a key profitability metric used in financial analysis.

Option 3 -> Expense Before Income and Tax - This is incorrect as EBIT measures earnings (profits), not expenses.

Option 4 -> Expenses Before Interest and Tax - This is incorrect as EBIT is an earnings measure, not an expense measure.

Hence, Option 2: Earning Before Interest and Tax -> EBIT stands for Earnings Before Interest and Tax, which is a financial metric that measures a company's operating profitability by excluding interest expenses and tax payments, allowing for better comparison of operational performance across companies -> correct