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Answer Posted / kanika
earnings before interest, taxes, depreciation, and
amortization
Earnings before interest, taxes, depreciation and
amortization (EBITDA) is a non-GAAP metric that can be used
to evaluate a company's profitability.
EBITDA = Operating Revenue – Operating Expenses + Other
Revenue
Its name comes from the fact that Operating Expenses do not
include interest, taxes, depreciation or amortization.
EBITDA is not a defined measure according to Generally
Accepted Accounting Principles (GAAP), and thus can be
calculated however a company wishes. It is also not a
measure of cash flow.
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