Definition
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a measure of a company`s overall financial performance and is used as an alternative to net income in some circumstances.
Frequently asked questions
What is earnings after interest taxes depreciation and amortization?
This is not a standard term. EBITDA is about earnings before paying these costs, not after.
How to calculate earnings before depreciation and amortization?
To find EBITDA, add back Interest, Taxes, Depreciation, and Amortization to Net Income.
The formula is: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.
What is the full form of EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.