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.