EBITDA Full Form – The Formula for Calculating EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It is a Accounting related term, Here you learn the full name and complete information of Earnings Before Interest, Taxes, Depreciation and Amortization.

TermFull Form
EBITDAEarnings Before Interest, Taxes, Depreciation and Amortization
CategoryAccounting
RegionGlobally

Find Useful Terms and Definitions which we use in daily life but we do not know their full name meaning, Here’s a list of important abbreviations that you should know.

What is Full Form of EBITDA

The full form of EBITDA is the Earnings Before Interest, Taxes, Depreciation and Amortization. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is an accounting convention designed to determine how profitable a firm or firm is with respect to an activity.

All About EBITDA

EBITDA, or earnings before interest, taxes, depreciation and amortization, is a measure of a company’s overall financial performance and is used in some circumstances as an alternative to net income. However, EBITDA can be misleading as it eliminates the cost of capital investments such as property, plant and equipment and equipment.

This metric also excludes debt-related expenses by adding interest and taxes to earnings. Nevertheless, it is a more accurate measure of a company’s performance as it is able to show earnings before accounting and financial deductions.

How do you calculate Ebitda?

The EBITDA formula is calculated by subtracting all expenses except interest, taxes, depreciation and amortization from net income.

Often the equation is calculated in reverse, starting with net income and adding back ITDA. Many companies use this measurement to calculate various aspects of their business.

  • EBITDA = Net Income + Interest + Taxes + Depreciation + Depreciation
  • EBITDA = Operating Profit + Depreciation + Depreciation

Related Full Forms List

TCS Full Form – Tax Collected at Source
GST Full Form – All About Goods and Services Tax
ITR Full Form – All About Income Tax Return
ESOP Full Form – Employee Stock Ownership Plan
FBO Full Form – Fixed Base Operator

If you have questions and answers related to EBITDA, then tell us your thoughts in the comment, know the complete meaning of EBITDA in this article.

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