Page 22 - New Employee Glossary

Glossary 22

E

Earnings

Revenues minus cost of sales, operating expenses, and taxes, over a given period of time.

Earnings Before Interest & Taxes (EBIT)

EBIT is a measure of a company's earning power from ongoing operations. It is equal to
earnings before deduction of interest payments and income taxes. Creditors watch EBIT
closely, since it represents the amount of cash that a company will be able to use to pay off
creditors. Also called operating income.

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)

EBITDA is an approximate measure of a company's operating cash flow. It is calculated by
looking at earnings before the deduction of interest expenses, taxes, depreciation, and
amortization and is a good way of comparing companies within and across industries. Also
known as operational cash flow.

Earnings Per Share (EPS)

The portion of a company’s profit allocated to each outstanding share of common stock. EPS
serves as an indicator of a company’s profitability and is generally considered to be an
important variable in determining a share’s price. It is calculated by dividing total earnings
by the number of shares outstanding.

EBS (Oracle E-Business Suite)

A comprehensive suite of integrated, global business applications used to transact financial
data. Also referred to as the transactional applications.

Economic Internal Rate of Return (eIRR)

See Internal Rate of Return (IRR).

Electroencephalogram (EEG)

Brain scan

Electronic Data Capture (EDC)

Term used by Oracle Clinical describing their electronic data capture products.