EBITA
📈 Investing
Quick Definition
EBITA stands for Earnings Before Interest, Taxes, and Amortization, a financial metric used to evaluate a company's operating performance without the effects of financial and accounting decisions.
Formula
EBITA = Revenue - Operating Expenses + Other IncomeExamples
- 1A company reports an EBITA of $500,000, indicating strong operational efficiency before considering interest, taxes, and amortization expenses.
- 2An investor compares the EBITA of two companies in the same industry to assess which one operates more efficiently.
- 3A business analyst uses EBITA to track the performance improvement of a company after operational changes were implemented.
Tags
EBITAfinancial-metricsoperating-performanceearnings-analysisinvestment-analysis
Related Terms
Other terms you might find helpful
Gross Profit
Gross profit is the total revenue of a company minus the cost of goods sold (COGS), representing the profit a company makes after deducting the costs associated with making and selling its products.
Operating Income
Operating income, also known as operating profit, represents the total earnings from a company's core business operations, excluding non-operating income, taxes, and interest expenses.
Quick Info
Category:Investing
Difficulty:intermediate
Last Updated:6/19/2025