I am using the formula (Net income + interest expense + tax expense) to get my calculation

What happens if the Income tax expense is negative for that year do you still add that negative number or do you use the absolute value of

For Example Atlas Air Worldwide Holdings, Inc. (AAWW)

For 2019

Net Income -293.1 mill , Interest Expense was 118.1 mill , Income Tax -179.6 mill

When I use that formula I get -354.6 Mill

So in this case would you add the negative number into the formula or would you subtract the the income tax because it's a benefit.

  • $\begingroup$ EBIT-Int-Tax= NI so EBIT-118,1-(-179.6) = -293.1 so EBIT = -293.1+118.1-179.6 = -354.6 as you found $\endgroup$ – noob2 Jun 4 at 19:54

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