EBITDA full form stands for Earnings Before Interest, Taxes, Depreciation, and Amortization . It is the alternate method of measuring profitability in net income. It strips out the non-cash depreciation, amortization expense, taxes, and debt costs that are dependent on the capital structure. EBITA is a metric used by Analysts and Investors to measure the operating profitability and efficiency of any company and used as a tool for comparison with companies in the similar industry. The acronym EBITA refers to a company’s earnings without accounting for interest, tax, and amortisation expenses . (Amortisation is the decline in value of an intangible asset – such as a licence, patent, or trademark – over time). EBITA ( Earnings Before Interest, Taxes, and Amortization ) is a financial metric used to measure a company’s operating performance. It indicates how much profit a company generates from its core operations, before deducting interest expenses, income taxes, and amortization of intangible assets.
