EBIRT
EBIRT is a business figure and says something about the operating profit of a company over a certain period of time. EBIRT is the abbreviation for Earnings before interest, royalties and taxes (earnings before interest, licenses and taxes).
In practical application, however, it has the meaning of “profit before financial result, extraordinary result / license expenses and taxes”.
Extraordinary (one-off) costs and expenses are ignored, as are interest, license expenses, other financing expenses or income, licenses and taxes. One speaks here of adjusting the profit or subtracting certain items:
Jahresüberschuss (Gewinn) + Steueraufwand - Steuererträge = EBT (Ergebnis der gewöhnlichen Geschäftstätigkeit) + außerordentlicher Aufwand - außerordentliche Erträge + Lizenzaufwand + Zinsaufwand - Zinsertrag = EBIRT
Using the EBIRT, financial analysts, finance directors and controllers can, for example, directly compare the operating profit of different financial years, quarters or company divisions without the results being distorted by fluctuating tax rates, interest expenses or other extraordinary factors.