EBIT is a financial metric that stands for Earnings Before Interest and Taxes. It is a measure of a company's operating profit, and is used to determine how much profit a company generates from its day-to-day operations.
EBIT is calculated by subtracting operating expenses from gross profit.
EBIT is a very important metric for a company, as it is a measure of how much money is left over after all the expenses have been paid.
It can be difficult to calculate EBIT directly inside of Xero; that's where Causal comes in.
Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your EBIT.
Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.
In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like EBIT. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.
When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.
Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like EBIT.