EBIT vs Net Income

EBIT minus Interest expense minus Income tax provision equals Net Income. Reverse the sign to bridge up: Net Income plus Interest expense plus Income tax provision equals EBIT. The bridge is GAAP-disclosed on every income statement^{[FASB ASC]}.

Interest expense add-back rule

Add the gross interest expense, not the net of interest income. Interest income is a non-operating item that sits below the OpInc line and should stay there (or be excluded from EBIT depending on the analyst's convention). Seethe interest-expense line-item page.

Income tax provision add-back rule

Add the income tax provision as reported (current + deferred). Do not adjust for repatriation, GILTI, or DTA releases unless you are computing Adjusted EBIT and documenting the adjustment separately^{[Reg G]}. See tax-provision page.

Minority interest and discontinued operations

Start the bridge from "Net Income attributable to the parent" if the company has minority interest, then add back the consolidated interest and tax in full. The resulting EBIT will then be the consolidated EBIT, which is the right basis for EV/EBIT against an enterprise value that already includes minority interest as a debt-like claim.

Why analysts back out interest and tax

To compare operating performance across companies with different leverage (financing choice) and different tax jurisdictions. See NVIDIA FY25for a worked example.