DizzyPickle
DizzyPickle
13mo

Can anybody explain in simple language what EBIDTA IS?

13mo ago
ZoomyMuffin
ZoomyMuffin

EBITDA is profit that you generally make only from operations. Something that is expected you to make and grow YoY if you are steady and no surprises.

Most items which are sudden and unrelated to business shud not be part of EBITDA.

High tax - not really part of operations coz other items can offset it, so ignore Interest from Bank - mostly unrelated to your operations so ignore One time sales or expenses - ignore

ZoomyMuffin
ZoomyMuffin

All other items added/subtracted from EBITDA (Interest, tax, depreciation, amortization) are things which can be juggled and adjusted. So, EBITDA is something which can be compared across similar companies. TCS vs Infosys vs Wipro etc

SnoozyQuokka
SnoozyQuokka

Why dont u chatgpt

Discover more
Curated from across