EBITDA

EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization

What is ‘EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization’
EBITDA – Earnings before interest, taxes, depreciation and amortization is an indicator of a company’s financial performance which is calculated in the following manner:

EBITDA = Revenue – Expenses (excluding tax, interest, depreciation and amortization).

EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.

EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization Definition |

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