MARKETS / GLOSSARY / EBITDA

EBITDA

Earnings before interest, tax, depreciation and amortisation — an attempt to show operating performance stripped of financing, tax regime and accounting for past investment.

Definition

How it is computed here

Formulaoperating income + depreciation and amortisation
UnitCurrency amount
PeriodOne fiscal year, as reported
SourceExtracted from SEC filings; every value on an asset page carries the accounting tag and the filing it came from
Identifierebitda
The limit

What this number does not tell you

EBITDA is not cash and it is not a regulated accounting figure: there is no single definition, and companies compute it their own way. It deliberately ignores the cost of the assets the business consumes, which for a capital-intensive company is not a detail.

Every metric on this site is published with its blind spot stated. A figure without its limit is half a fact.

Advertisement
AdSense · Leaderboard 728×90 · responsive
Related

Read next