EBITDA Solution

STEP 0: Pre-Calculation Summary
Formula Used
EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization
EBITDA = EBIT+D+Am
This formula uses 4 Variables
Variables Used
EBITDA - EBITDA provides a clearer picture of a company's operational profitability by excluding the effects of financing decisions, taxes, and non-cash expenses.
Earnings Before Interest and Taxes - Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.
Depreciation - Depreciation is an accounting method of allocating cost of tangible asset over useful life. Monetary value of asset decreases over time due to obsolescence. This decrease is measured as depreciation.
Amortization - Amortization refers to the process of spreading out the cost of an intangible asset or capital expenditure over a specific period.
STEP 1: Convert Input(s) to Base Unit
Earnings Before Interest and Taxes: 8746 --> No Conversion Required
Depreciation: 11880 --> No Conversion Required
Amortization: 400000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
EBITDA = EBIT+D+Am --> 8746+11880+400000
Evaluating ... ...
EBITDA = 420626
STEP 3: Convert Result to Output's Unit
420626 --> No Conversion Required
FINAL ANSWER
420626 <-- EBITDA
(Calculation completed in 00.004 seconds)

Credits

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Created by Kashish Arora
Satyawati College (DU), New Delhi
Kashish Arora has created this Calculator and 50+ more calculators!
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Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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Basics of Financial Accounting Calculators

Depletion Charge per Unit
​ LaTeX ​ Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
​ LaTeX ​ Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares
Discount Percentage
​ LaTeX ​ Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100
Shareholders' Equity given Total Assets and Liabilities
​ LaTeX ​ Go Total Shareholders' Equity = Total Assets-Total Liabilities

EBITDA Formula

​LaTeX ​Go
EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization
EBITDA = EBIT+D+Am

What is EBITDA?

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is widely used in the analysis of asset-intensive industries with a lot of property, plant, and equipment and correspondingly high non-cash depreciation costs. In those sectors, the costs that EBITDA excludes may obscure changes in the underlying profitability—for example, as with energy pipelines.
Meanwhile, amortization is often used to expense the cost of software development or other intellectual property. That's one reason early-stage technology and research companies may use EBITDA when discussing their performance.

How to Calculate EBITDA?

EBITDA calculator uses EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization to calculate the EBITDA, The EBITDA formula is is a metric used to evaluate a company’s operating performance before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base. EBITDA is denoted by EBITDA symbol.

How to calculate EBITDA using this online calculator? To use this online calculator for EBITDA, enter Earnings Before Interest and Taxes (EBIT), Depreciation (D) & Amortization (Am) and hit the calculate button. Here is how the EBITDA calculation can be explained with given input values -> 420626 = 8746+11880+400000.

FAQ

What is EBITDA?
The EBITDA formula is is a metric used to evaluate a company’s operating performance before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base and is represented as EBITDA = EBIT+D+Am or EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization. Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses, Depreciation is an accounting method of allocating cost of tangible asset over useful life. Monetary value of asset decreases over time due to obsolescence. This decrease is measured as depreciation & Amortization refers to the process of spreading out the cost of an intangible asset or capital expenditure over a specific period.
How to calculate EBITDA?
The EBITDA formula is is a metric used to evaluate a company’s operating performance before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base is calculated using EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization. To calculate EBITDA, you need Earnings Before Interest and Taxes (EBIT), Depreciation (D) & Amortization (Am). With our tool, you need to enter the respective value for Earnings Before Interest and Taxes, Depreciation & Amortization and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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