how do you calculate the percent of EBIT over many years? such as five or more years as a percent.
If you wish to calculate EBIT there are many methods
1(revenues - cost of goods sold - Operating expense)
2(net income + interest and taxes)
you can use ratios like (EBIT/total sales) used to see what percentage of sales are operating profits
If you want an analysis in terms of percentage its better that you use EBITDA Margin that is(Earnings Before Interest, Tax, Depreciation and Amortization/ total revenue) used to examine the effictiveness of a firms cost cutting
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