What would cause EBIT and NI to be the same?
Quick question above. Would it be if I have interest income instead of expense and it equals the tax deduction, I would get EBIT=NI?
Thanks
Trending Content - Investment Banking Forum
| +137 | UBS Catastrophic Q1-Q3 26, M&A -17%, Outside Top 10 in Americas, EMEA & APAC | 37 | 1d |
| +58 | PWP acquisition by Piper cancelled | 21 | 1h |
| +29 | Evercore poaches Baird DC Defense Team | 18 | 6h |
| +28 | Houston banking Gods ? | 16 | 2d |
| +21 | Best Houston Banks for Culture in 2026 | 14 | 3h |
| +18 | Normal for lateral process to go +2 months? | 4 | 1d |
| +17 | Internal lateral from coverage to M&A (focused on coverage) | 4 | 11h |
| +15 | How standard is weekend work in IBD? | 6 | 2d |
| +15 | Discussion Transaction Experience in Lateral Interviews | 3 | 3d |
| +15 | Ducera Insights? | 3 | 2d |
Career Resources
0=0. Ha ezy
lmaoo cmon bro
You named one of the possibilities. The other one I can think of is debt-free non-profits that are exempt from federal and state taxes, assuming no interest income.
These examples should work
Example 1,2 - Tax heaven
Company in a tax haven and no interest
Company in a tax haven and interest expense equal to interest income
Example 3 - Cashing DTAs (e.g Guaranteed DTAs being paid-in)
Example 4
The only other scenario I can think of is if there is a loss. Then both sides will be negative and should equal each other.
True, I was thinking of scenarios with same zero cash effects, so your point is definitely true.
You wouldnt "receive that negative tax as cash", but it would equal in terms of accounting
an LLC, an S Corp, a REIT or a BDC with no debt... Not necessarily a realistic situation though
A financial institution that only has asset debt that is structured as an LLC. interest expense on the asset debt for a FinCo would be netted against revenue and be above the line in terms of EBIT. If its an LLC then no taxes. EBIT = EBT = NI
Why couldn’t it also be a C Corp with no debt (therefore no interest) and also 0 pre-tax income (therefore no taxes)
Hic aperiam est sit consequatur eum sit et autem. Sunt id porro quis alias.
Molestiae possimus tenetur inventore. Perspiciatis occaecati dolorem vel. Cupiditate labore nisi delectus quos provident quia rerum. Nesciunt voluptatem dicta velit ut aut perferendis et qui. Libero provident magnam est officia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...