Project Finance and Excel - Build Financial Models from Scratch - EBIT Calculation in the P&L Statement

The lecture focuses on exporting values to a profit and loss statement, emphasizing the role of amortization in reducing tax liability. It explains how to compute EBIT by incorporating amortization values and introduces the concept of interest payments on borrowed funds. The lecture also distinguishes between the use of asset values in different financial statements.

What is the primary goal of this lecture?

• To determine the closing asset values

• To calculate the tax liability

• To export values into the profit and loss statement

• To compute the interest payments

How does amortization affect the profit and loss statement?

• It is not included in the P&L statement

• It reduces the tax liability

• It is added to the EBITDA

• It increases the taxable profit

Which values are not needed for the P&L statement but will be used in the balance sheet?

• Amortization values

• Interest payments

• Asset opening and closing values

• EBIT values

What is the formula for computing EBIT in the P&L statement?

• Sum of amortization and interest payments

• Sum of F13 and F15

• Difference between EBITDA and amortization

• Product of asset values and amortization

What is the next topic to be covered after computing EBIT?

• Interest payments on borrowed funds

• Finalizing the balance sheet

• Determining asset values

• Calculating tax liability