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 or
depreciation. It is important to note that EBITDA does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. It is a less common measure than
EBITD or
EBIT.