EBITDA

Definition

EBITDA (earnings before interest, taxes, depreciation and amortisation). Accounting metric for comparing the income of companies with different capital structures.

Companies with significant fixed assets, such as manufacturing companies, or companies which incur large depreciation charges or which have significant intangible assets which result in large amortisation charges, can easily be compared. It is also a useful measure for a company's creditors as it shows the income available for interest payments.