Meaning and comparability
EBIT is profit before interest and income tax. It is used to consider business performance separately from some effects of financing and taxation. The name does not guarantee that every company calculates it in the same way: check which items are included and how the measure reconciles to reported profit.
Illustrative comparison
If an illustrative company takes on more debt, interest expense may reduce net income while EBIT remains unchanged, all else being equal. This comparison helps separate changes in operations from changes in debt load. But if EBIT includes a gain from selling a building, an increase in the measure may not recur in the future.
What EBIT is not
EBIT should not automatically be treated as operating profit or cash flow. The difference depends on the accounting presentation and selected formula. An investor should check the calculation, one-off items and the relationship with debt-service costs rather than compare only large figures in a presentation.