Wondering what "EBITDA" (Earnings Before Interest, Taxes, Depreciation and Amortization) means? This short reference explains it in plain terms.
EBITDA is a measure of a company's core operating profitability, excluding the effects of financing, tax and non-cash charges.
What is EBITDA?
EBITDA is a measure of a company's core operating profitability, excluding the effects of financing, tax and non-cash charges.
| Full form | Earnings Before Interest, Taxes, Depreciation and Amortization |
|---|
Where it is used
- Comparing operating performance
- Business valuation
Why EBITDA matters
EBITDA shows up in real filings, forms and transactions, so knowing what it means helps you complete them correctly and avoid errors, rejections or penalties. When in doubt about how EBITDA applies to you, confirm on the official portal or with a qualified professional before filing.
Frequently asked questions
What is the full form of EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization.
What is EBITDA used for?
Comparing operating performance; Business valuation.