Difference between revisions of "EBITDA"
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== Definition == | == Definition == | ||
| − | '''EBITDA''' (earnings before interest, taxes, depreciation and amortisation) | + | '''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.<ref>ECB Guidance to banks on non-performing loans, March 2017</ref> | |
== References == | == References == | ||
<references/> | <references/> | ||
| − | [[Category: | + | [[Category:Income Statement Items]] |
Latest revision as of 14:42, 13 April 2021
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.[1]
References
- ↑ ECB Guidance to banks on non-performing loans, March 2017
