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18 Aug 2022

Market Metrics: MSCI World EBIT

EBIT stands for earnings before interest and taxes and is an indicator of a company’s profitability.

By ignoring the tax burden and capital structure, EBIT helps to identify a company’s ability to generate enough earnings to be profitable, pay down debt and fund ongoing operations.

A higher EBIT is much better than a low EBIT.

Global companies operation at a high EBIT has been a contributing factor for why the fall in asset prices paused at correction levels in June and did not crash.

Companies globally are making money even with rising interest rates and inflation.

Click for chart.

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