Definition EBIAT. Description.
EBIAT is an acronym of Earnings Before Interest
After Taxes. It is an (unusual) indicator of a company's financial performance.
It is calculated as Revenues less Cost of Goods Sold less
Selling, General and Administrative Expenses.
So: EBIAT = Revenue - CGS - SG&A
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Earnings Before Interest After Taxes - EBIAT Example
"I have a question: as I am drowning in a course on financial management.
A companys projected sales for 1/2010: $400,000; 2/2010 $540000; 3/2010: $350000, 4/2010: $450000, 5/2010 $480000; 6/2010 $520000;
30% of sales is collected in cash at the time of sale; 60% in the month following the sale, 10% in the 2nd month after the sale.
Cost of Goods Sold 70% of sales.
Expenses $50,000 monthly.
Company must have $20,000 cash monthly.
What is the earnings before interest and taxes for April 2010?
1. $85,000, 2. $159,000 3. $138,000 4. $135,000.
Please explain steps to arrive at outcome. Thank you." |
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EBIAT Special Interest Group
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Compare with: EBIT |
EBITDA |
Earnings Per Share
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EBIAT Sponsor
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