What is EBIDTA?

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EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial measure used to assess a company’s financial performance. It is a measure of a company’s profitability that excludes non-operating expenses like interest, taxes, depreciation, and amortization.

Credits: Investopedia

The EBITDA metric is useful for evaluating the operating performance of a business without considering the impact of non-operating factors. It is often used by analysts and investors to compare the profitability of different companies or to evaluate the performance of a company over time.

EBITDA is calculated by subtracting operating expenses, excluding interest, taxes, depreciation, and amortization, from a company’s total revenue. The resulting figure is a measure of the earnings generated by a company’s operations before taking into account the impact of financing, taxes, or capital investments.

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