Earnings before interest and taxes (EBIT) is a useful financial metric. Here's what investors need to know about it.

We first subtract the cost of goods sold (COGS) from total revenue to calculate the gross profit. COGS totals $126,584 million. Selling, administrative, and other fixed expenses aren't included.

Starting with total revenue, follow these steps to calculate net income: When someone talks about a company’s “bottom line,” they’re usually talking about net income. A positive net income ...