Does Revenue minus Total Variable Costs minus Total Fixed Costs = EBIT ?
Thank you!
Nope.
Hmm.
Corporate Finance: Measures of Leverage
Financial Leverage = %change NI / %change EBIT
What components would make up EBIT when trying to calculate Financial Leverage?
It really depends on what you mean by “total fixed costs”.
Interest, for example, is a fixed cost (for the purposes of computing financial leverage), but it comes out after EBIT.
If by “total fixed costs” you mean all fixed operating costs (e.g., salaries, insurance, rent, depreciation, and so on), then, yes: revenue less variable costs less fixed costs is EBIT.