What does EBITDA mean?

Definition and explanation What is EBITDA? Definition and explanation EBITDA is an acronym that stands for "earnings before interest, tax, depreciation, and amortization". The term describes the result of interest, taxes and depreciation on fixed assets and immaterial assets.

What are the different types of EBITDA & EBITA?

Besides EBITDA there are other key figures that may be of interest: EBIT ( earnings before interest and tax) and EBITA ( earnings before interest, tax, and amortization ). In addition to the "sole" EBITDA described, there is also the term adjusted or cleaned EBITDA.

Why is EBITDA important for business owners?

How to calculate and apply EBITDA is important for business owners for two key reasons: Getting a clearer idea of your company’s value. Demonstrating to buyers and investors its worth.

What is adjusted EBITDA & how does it work?

The result is earnings before interest, taxes, depreciation, and amortization, or EBITDA. In other words, you're adding any expenses from these categories to (and subtracting any gains from) the company's net income. Note: Many companies also report adjusted EBITDA.