Earnings before interest, taxes, depreciation, and amortization (EBITDA),
Definition of Earnings before interest, taxes, depreciation, and amortization (EBITDA):
Computed by subtracting cost of sales and operating expenses (but not amortization and/or depreciation, interest, and taxes) from total revenue. EBITDA figure is used usually as a measure of the financial performance of a firm with large capital, restructuring, or acquisition costs.
Meaning of Earnings before interest, taxes, depreciation, and amortization (EBITDA) & Earnings before interest, taxes, depreciation, and amortization (EBITDA) Definition