What is EBIDTA in company format

Question

Accepted Answer

EBIDTA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance.

EBIDTA is calculated by taking a company's revenue and subtracting its operating expenses excluding interest, taxes, depreciation, and amortization.
It is a commonly used metric to evaluate a company's profitability and financial performance.
EBIDTA helps investors and analysts to compare the financial performance of different companies without considering the effects of financing and accounting decisions.
For example, if a company has a revenue of $1,000,000 and operating expenses of $600,000, the EBIDTA would be $400,000.

Popular interview questions of Fmcg Manager