EBITDA

Earnings before interest, taxes, depreciation and amortization (EBITDA) is a measure of a company’s profitability. It is calculated by subtracting a company’s expenses from its revenue without excluding its tax liabilities, interest paid on debt, amortisation and depreciation. This is often used by companies with large amounts of fixed assets that depreciate quickly in value such as manufacturers or those with a significant debt financing. It is not part of GAAP approved accounting.

This definition is for general information purposes only