World Class Know How
020 8390 9972

Measures of accounting profit

Measures of accounting profit

Companies make use of several different measures of profit, and each company will have its own preference. It is important to understand this preference, because as the well-known adage goes, ‘you get what you measure’. This is especially the case when bonuses are contingent on achieving a particular year end profit target. Commonly used profit measures include:

  • EBITDA – earnings before interest, tax, depreciation, amortisation of goodwill, sometimes known as gross cash profits
  • EBIT (or PBIT) – earnings (or profit) before interest and tax
  • EBT (or PBT) – earnings (or profit) before tax
  • Earnings – profit after tax
Measures of accounting profit, nevertheless, suffer from a number of important to be aware of limitations.

To discuss your business critical issue

Please call us today on 020 8390 9972 or 07790 501225 or send a message.

Added value guarantee

Now in its 25th year, Compete to Win is proud to say that no client has ever challenged its no quibble added value guarantee.


To discuss your business critical issue, please call Paul New on 020 8390 9972 or 07790 501225 or send a message.


If you are looking for something in particular, please use our Sitemap.