EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It is a Accounting related term, Here you learn the full name and complete information of Earnings Before Interest, Taxes, Depreciation and Amortization.
| Term | Full Form |
| EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization |
| Category | Accounting |
| Region | Globally |
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What is Full Form of EBITDA
The full form of EBITDA is the Earnings Before Interest, Taxes, Depreciation and Amortization. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is an accounting convention designed to determine how profitable a firm or firm is with respect to an activity.
All About EBITDA
EBITDA, or earnings before interest, taxes, depreciation and amortization, is a measure of a company’s overall financial performance and is used in some circumstances as an alternative to net income. However, EBITDA can be misleading as it eliminates the cost of capital investments such as property, plant and equipment and equipment.
This metric also excludes debt-related expenses by adding interest and taxes to earnings. Nevertheless, it is a more accurate measure of a company’s performance as it is able to show earnings before accounting and financial deductions.
How do you calculate Ebitda?
The EBITDA formula is calculated by subtracting all expenses except interest, taxes, depreciation and amortization from net income.
Often the equation is calculated in reverse, starting with net income and adding back ITDA. Many companies use this measurement to calculate various aspects of their business.
- EBITDA = Net Income + Interest + Taxes + Depreciation + Depreciation
- EBITDA = Operating Profit + Depreciation + Depreciation
Related Full Forms List
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