EBIAT Definition

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EBIAT is Earnings Before Interest After Taxes. It  is a measure of a company's ability to produce income on its operations in a given year. See NOPAT.

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INCOME AFTER TAXES is the net profit earned by the company after deducting all expenses like interest, depreciation and tax. PAT can be fully retained by a company to be used in the business. Dividends, if declared, are paid to the share holders from this residue.

MONEY MEASUREMENT CONCEPT stipulates that all business transactions must be expressed in money terms, i.e., if something cannot be measured in money; it will not be included in accounting books.

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