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

Calculation: Sales less all cash expenses except Finance Charges and Income Tax (and Adjustments).

EBITDA is the amount of Profit available after deducting from Sales the cash expenses associated with the operations of the company (Cost of Sales, SG&A but not Deprecation), and before paying finance charges and taxes.

EBITDA is used to evaluate a company's operating performance without factoring in financing decisions, accounting practices, or tax environments.

EBITDA does not include the non-cash expenses such as Depreciation and Amortization.

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