Profit cascade
#17GUIDING QUESTION
EBIT → EBT → Net income: where is the margin ‘lost’?
Compare operations, the financial effect and taxes.
01.What it is
Reading EBIT, EBT and net income together shows where the margin shrinks: debt and taxes.
02.Interpretation
- Large EBIT–EBT gap → debt weighs heavily.
- Large EBT–Net gap → tax burden/extraordinary items.
03.Related to
- Interest coverage
- ROE
- ROA