Earnings before interest but after taxes (EBIAT)is driven by sales,profitability,and ____.
A) liquidity
B) cash flow
C) depreciation
D) asset intensity

Question

Quizplus · Accepted Answer

EBIAT is affected by factors such as sales and profitability, which determine the company's revenue and expenses. However, asset intensity also plays a role in determining EBIAT as it measures how efficiently a company uses its assets to generate revenue. Higher asset intensity means higher operating expenses, resulting in lower EBIAT. Therefore, the correct answer is D, asset intensity.

Earnings Before Interest but After Taxes (EBIAT)is Driven by Sales,profitability,and