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.

الصفحة الرئيسية منصة الأسهم منصًة العملات منصّة العملات الرقمية جدول الأعمال الاقتصادي كيف تعمل مميزات الرسم البياني أسعار العضوية إحالة صديق قوانين الموقع مركز المساعدة حلول المواقع الإلكترونية والوسطاء الأدوات حلول الرسوم البيانية مكتبة الرسوم البيانية صغيرة الحجم المدوّنة والأخبار تويتر
ملف التعريف إعدادات الصفحة الشخصية الحساب وإعداد الفواتير إحالة صديق تذاكر الدعم الخاصة بي مركز المساعدة التحاليل المنشورة المتابعين تُتابع رسالة خاصة المحادثة تسجيل الخروج