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

What is EBITDA?

EBITDA is a metric used to measure the operating performance of a company. In some cases, it is used as an alternative to gross profit or net income because it shows a clear picture of a company’s earnings without factoring in taxes or other accounting-related estimates.

EBITDA represents profit before:

  • Interest - expenses caused by interest rates
  • Taxes - expenses caused by tax rates
  • Depreciation & Amortization - non-cash expenses related to the gradual decrease in the value of tangible and intangible assets of a company over time

Why is EBITDA important?

EBITDA helps compare profitability between companies and industries by eliminating the impacts of financial, accounting, and governmental factors. It gives a clear picture of a company's income.

How is EBITDA calculated?

EBITDA is calculated by taking Total Revenue and subtracting Costs of Goods Sold, Selling, General & Administrative Expenses, Other Operating Expenses, and then adding Depreciation & Amortization.

Why is there no EBITDA for some companies?

If a company is classified as Insurance or Bank, EBITDA will not be available due to its calculation methodology. These companies will not have Costs of Goods Sold, Selling, and General & Administrative Expenses, which are needed in the calculation.

홈으로 스탁 스크리너 포렉스 스크리너 크립토 스크리너 이코노믹 캘린더 사용안내 차트 특징 프라이싱 프렌드 리퍼하기 하우스룰(내부규정) 헬프 센터 웹사이트 & 브로커 솔루션 위젯 차팅 솔루션 라이트웨이트 차팅 라이브러리 블로그 & 뉴스 트위터
프로화일 프로화일설정 계정 및 빌링 리퍼드 프렌즈 코인 나의 서포트 티켓 헬프 센터 공개아이디어 팔로어 팔로잉 비밀메시지 채팅 로그아웃