What are EBIT and EBITDA, and what do they indicate about a company's profitability?

• A. EBIT measures profitability after all operating expenses including depreciation.
• B. EBITDA equals net income before interest, taxes, depreciation, and amortization.
• C. EBIT is operating income; EBITDA adds back depreciation and amortization.
• D. EBIT and EBITDA are both capitalized equally and used interchangeably.

Answer: (C)