Posted in Finance, Accounting and Economics Terms, Total Reads: 1494
EBITDA is an acronym for Earnings before Interest, Tax, Depreciation and Amortization. It is equal to Revenue minus all operating expenses other than depreciation, interest and taxes. It is a proxy for operating cash flow but with an exception of depreciation and amortization. It may include other non-cash revenues and expenses but it is basically seen as a fund source to pay out interest, dividend and tax.
It can be calculated in 2 ways:
Revenue – Expenses (other than interest, depreciation, amortization and tax)