ebitda
Học thuậtThân thiện
Definition
- Noun:
- A financial metric: EBITDA stands for "Earnings Before Interest, Taxes, Depreciation, and Amortization." It is a measure of a company's overall financial performance, calculated by taking net income and adding back interest, taxes, depreciation, and amortization expenses.
- An indicator of operational profitability: It is used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions (like debt structure and non-cash charges for asset wear).
Usage Examples
- Noun:
Advanced Usage
- "Adjusted EBITDA": A variation that further normalizes earnings by also removing one-time, irregular, or non-recurring expenses to show a clearer picture of ongoing operational performance.
- EBITDA Margin: A profitability ratio calculated as EBITDA divided by total revenue, expressed as a percentage.
Variants and Related Words
- EBIT (Earnings Before Interest and Taxes): A similar metric that excludes depreciation and amortization, focusing more narrowly on operating profit.
- Net Income: The final profit after all expenses, including interest, taxes, depreciation, and amortization, have been subtracted.
Synonyms
- Operating cash flow (conceptually related, though not identical, as EBITDA is an accrual-accounting measure).
- Operating profit (a related concept, but typically refers to EBIT).
Related Phrases
- "Multiple of EBITDA": A common valuation method where a company's value is estimated by multiplying its EBITDA by an industry-standard number.
- "EBITDA coverage ratio": A financial metric used to assess a company's ability to pay off its debt, calculated as EBITDA divided by total debt payments.
Noun
- income before interest and taxes and depreciation and amortization have been subtracted; an indicator of a company's profitability that is watched by investors (especially in leveraged buyouts)