answersLogoWhite

0


Best Answer

Earnings before interest, tax, depreciation and amortization. It means that accounting profit amount shown is after deducting all these expenses.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What does the accounting term EBITDA mean?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is EBITDA margin?

EBITDA Margin is the ratio of EBITDA to Sales Revenue. Example: Revenue of $10,458 and EBITDA of $871 yeilds EBITDA Margin of 8.3%.


How do you calculate EBITDA percent Margin?

EBITDA Margin = EBITDA/Sales


What does the accounting term MPV mean?

Material Pricing Variance


What do current liabilities mean in accounting?

Current Liabilities in accounting are amounts that are owed by a business. The two types of current liabilities are short-term and long-term liabilities.


What is EBITDA?

What is EBITDA?Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability. EBITDA = Operating Revenue - Operating Expenses + Other RevenueIts name comes from the fact that Operating Expenses do not include interest, taxes, depreciation or amortization. EBITDA is not a defined measure according to Generally Accepted Accounting Principles (GAAP), and thus can be calculated however a company wishes. It is also not a measure of cash flow.EBITDA differs from the operating cash flow in a cash flow statement primarily by excluding payments for taxes or interest as well as changes in working capital. EBITDA also differs from free cash flow because it excludes cash requirements for replacing capital assets. EBITDA is used when evaluating a company's ability to earn a profit, and it is often used in stock analysis.


What does the term capital assets mean in accounting?

In accounting the term capital assets refers to an asset that is usually held for the purpose of contributing to earnings for a business over a long period of time.


What does the term AAT stand for?

Association of Accounting Technicians Apart from this, it also stands for the membership of the Association.So it can also mean Associate of Accounting Technicians


What does the term non profit accounting mean?

The term "nonprofit accounting" refers to the financial record keeping of companies that qualify for tax exemptions such as Charities, Hospitals, Government Departments and Credit Unions.


Which is the correct term is that accounting finance or Finance accounting?

Accounting and Finance


What does take a default mean?

Sports- lose by not playing Accounting term- behind on payments on a loan


Can a ebitda percentage margin be negative?

Yes, EBITDA Margin can be negative. When a company is positive it is due to good efficiencies processes that have kept certain expenses low. While Negative EBITDA can suggest the contrary.


What is a good EBITDA?

Depends on what you're comparing it to. Since EBITDA is a dollar amount, it's not really something you can compare between companies, especially of different sizes. Obviously, you want EBITDA to be positive, as it is essentially revenue. It would help with comparisons to convert it to a percentage change. (EBITDA2 - EBITDA1)/(EBITDA1) where EBITDA2 is EBITDA at period 2 and EBITDA1 is EBITDA at period 1. That way, you can see how much EBITDA has grown for a given company in a percentage. Then, you can compare it to similar companies. Higher is usually better.