EBITDA

E+I+T+D+A

Net earnings  Total earnings received by a business based on the U.S. Income Tax Return. The financial numbers of these earnings depend on the type of... + Interest  A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at... expense + Income  Income, also known as earnings or profits, is money that a person or a business receives in return for working, providing a product or... tax expense + Depreciation  A reduction in the value of an asset over time, due to wear and tear. + Amortization  The term “amortization” refers to: • In accounting, Amortization is very similar to depreciation, it's a decrease in the value of an intangible asset, which...

or

Operating income  Operating Income = Revenue*- COGS or cost of revenue−Operating Expenses  or Operating Income=Gross Income−Operating Expenses Also known as Income from operations, income before interest... + 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.