Earnings Before Interest, Taxes, Depreciation and Amortization


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Earnings Before Interest, Taxes, Depreciation and Amortization

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.
References in periodicals archive ?
The earnings before interest, taxes, depreciation and amortization (EBIT-DA) of the company, $220 million at the time, were not materially affected by the rental payments embedded in the sale-leaseback transaction.
SPARTAN STORES' EARNINGS SLIP: Spartan Stores Inc.'s earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter ended September 12 fell 5% to $30 million on sales of $610 million, compared to $31.5 million on sales of $627 million in the prior-year period.
It is important to beware of companies that use EBITDA (earnings before interest, taxes, depreciation and amortization).
By contrast, cash flow loans typically come with stringent -- sometimes highly restrictive -- financial covenants, such as a leverage ratio maximum, fixed charge coverage, interest coverage and minimum EBITDA (earnings before interest, taxes, depreciation and amortization).
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11.4% during the quarter to $115.5 million, or 12% of revenues.

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