What is
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)
Earnings before Interest, Taxes, Depreciation and Amortization is a term that refers to EBIT (Earnings before Interest and Taxes) plus depreciation. Depreciation represents depreciation of long-term tangible assets and amortization of long-term intangible assets.
Earnings before Interest, Taxes, Depreciation and Amortization, abbreviated as EBITDA. It is a term that refers to EBIT plus depreciation. Depreciation represents depreciation of long-term tangible assets and amortization of long-term intangible assets. (US accounting system distinguishes different types of depreciation.)
Calculation: EBITDA = EBIT + depreciation
Use of EBITDA in practice: in business it is used by CFO in financial analysis to analyze ratios.
Related terms and methods:
Related discipline:
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Related management field:
EBITDARM (earnings before interest, taxes, depreciation, amortization, rent and management fees)
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