Earnings before interest, taxes, depreciation, and amortization (EBITDA)

Earnings before interest, taxes, depreciation, and amortization (EBITDA),

Definition of Earnings before interest, taxes, depreciation, and amortization (EBITDA):

  1. 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