EBITDA
EBITDA is a profitability metric, calculated as Net income + interest + income taxes + D&A (≈ operating income + D&A with no other non-operating items).
- Layer
- Metric
- Defined in
- Metric definitions
- Components
- 1
- Nearby
- 2
Authority
This definition follows Non-GAAP financial measure — SEC Regulation G — it is not a GAAP measure, so a registrant publishing it has to reconcile it to the nearest GAAP figure.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
Formula
Net income + interest + income taxes + D&A (≈ operating income + D&A with no other non-operating items)
Non-GAAP — see below.
A metric without its definition is a number people argue about in meetings. Every metric component in this system requires one — see the rules.
EBITDA, in use
Quoted from the 3 documents that use the word — what it does to an interface, in the spec's own sentence.
EBITDA, adjusted EBITDA, free cash flow, adjusted net income.
"Adjusted EBITDA" with unnamed adjustments is not a number, and the component requires the adjustment list.
Everything in Metric definitions — ARR, EBITDA, net burn, runway, magic number — is a non-GAAP financial measure.
US GAAP, and where these rules come from — Metrics are not GAAP
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
Components that render this
The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.
Components that render the terms it depends on
Little in the catalog names this concept outright, but its definition is built out of others that are named. These render operating income, net income.
Nearby in the catalog
Components in this part of the system that no term names outright. A weaker claim than the list above, and stated as one — but a component nothing links to is a component nobody finds.
Terms this one depends on
Also in Profitability
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
- EBITDA calculatorEBITDA is a profitability metric, calculated as Net income + interest + income taxes + D&A (≈ operating income + D&A with no other non-operating items).Calculator
- EBITDA vs operating incomeOperating income is profit after all operating expenses, depreciation and amortization included; EBITDA adds depreciation and amortization back, so it is always at least as large and ignores what the company's assets cost to use up.Compare
- EBIT vs EBITDAEBIT is earnings before interest and taxes; EBITDA is EBIT with depreciation and amortization added back — the difference between them is exactly the period's D&A.Compare
Defined in Metric definitions. This page is generated from that document, so the two cannot disagree.