Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent

Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent

A measure of a company's ability to produce income on its operations in a given year. It is calculated as the company's revenue less most of its expenses (such as overhead) but not subtracting its tax liability, interest paid on debt, amortization, depreciation, or rent on its facilities. It is important to note that EBITDAR does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. It is a less common measure than either EBITD or EBIT.