Calculating EBIT using DAX

EBIT (Earnings Before Interest and Tax) is one of the key financial KPIs, which indicates company's profitability. EBIT calculation can differ from company to company, but is generally calculated by substracting expenses (tax and interest included) from revenue.

Let's see how measure for EBIT can be prepared in Power BI.

The first step to calculate EBIT is retrieving necessary data - for that, we need general ledger, chart of accounts and cost centers.

Pictured below is sample data for general ledger, which includes information for revenue and expenses.

And below, is the list of account codes that clasify revenue and expenses.

When we have the necessary data, we can create new measure: EBIT = Revenue – Expenses, where expenses are defined as sum of column debit and revenue as sum of column credit.

Revenue includes values for those account codes that start with and expenses for account codes that start with 4, with the exception of those that start with 49 and the whole account code group 72.

Which account codes are included into calculation depends on the interpretation of costs and the specific financial operations of each company. Therefore, the measure can be defined differently than demonstrated above.

We can track EBIT by different dimensions such as product, cost center and month.. We can also create additional measure to compare EBIT in selected vs previous year or plans for next year. 

EBIT is one of the key financial KPIs - to see more, check our solution for financial analytics.