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EBITDA

EBITDA

 

E+I+T+D+A

Net earnings + Interest expense + Income tax expense + Depreciation + Amortization

or

Operating income + Depreciation and amortization

EBITDA is the earnings before interest expense, taxes, depreciation, and amortization. It’s a measure of a company’s overall financial performance and is an alternative to net income. This measure focuses on the capacity of a business to make money, but it ignores the capital investment costs like property, plant, and equipment.

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