Glossary
Definition
EBITDA
Earnings before interest, taxes, depreciation, and amortisation.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It is a widely used measure of a company's core operational profitability, stripping out financing decisions, accounting treatments, and tax environments. EBITDA margins (EBITDA ÷ revenue) are commonly compared across companies in the same industry.
Frequently Asked Questions
Is EBITDA the same as profit?
No. EBITDA excludes interest expenses, taxes, and non-cash depreciation and amortisation charges. Net profit (bottom line) deducts all of these. A company can have high EBITDA but still report a net loss.