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EBITDA
[ee-bit-do]
noun
earnings before interest, taxes, depreciation, and amortization: a widely used measure of the profitability (or lack thereof) resulting from a company’s core operations, calculated by subtracting from total revenue the cost of goods (or services) sold, sales and marketing expenses, and the cost of overhead. Other costs that may be indirectly related to operations, as interest (paid on company debt), taxes (paid on profits), and depreciation and amortization (generally of property and equipment), are not taken into account when calculating EBITDA.
EBITDA
abbreviation
Often shortened to: EBIT.earnings before interest, tax, depreciation, and amortization
Word History and Origins
Origin of EBITDA1
Example Sentences
Using the pro forma earnings measure known as adjusted EBITDA, which excludes some expenses, it doubled its profit to $128 million.
Cardiff Airport uses EBITDA, which records earnings before tax, interest and other items, to report on its financial performance.
The Cobre Panama mine's activity accounts for nearly 5% of the country's economy, and last year represented about half of First Quantum's EBITDA.
Those coveted assets have previously been bought and sold at hefty multiples of more than 20 times their EBITDA.
Last year, he said, the publication generated about $13.5 million in earnings before interest, taxes, depreciation and amortization, or EBITDA.
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When To Use
EBITDA is a financial abbreviation that stands for Earnings Before Interest, Tax, Depreciation, and Amortization.
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