EBITDA
EBITDA (earnings before interest, taxes, depreciation, and amortization) is used as an indicator to assess the financial performance of a company. The figure includes interest expenses, taxes, depreciation, and amortization costs in addition to the net income. All the required information to calculate EBITDA will be available from the income statement and balance sheet.
Share:
EBITDA = net income + interest expenses + taxes + depreciation + amortization.
It can also be calculated by adding depreciation expenses and amortization expenses to operating profit.
EBITDA = operating profit + depreciation + amortization
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.
