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Definition Edit

EBITA (an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization) is

[a]n approximate measure of a company’s operating cash flow based on data from the company’s income statement. [It is] [c]alculated by looking at earnings, which are calculated by subtracting opex and SG&A from net revenues, before the deduction of interest expenses, taxes, depreciation and amortization. This earnings measure is of particular interest in cases where companies have large amounts of fixed assets which are subject to large depreciation.[1]

References Edit

  1. The Broadband Availability Gap, OBI Technical Paper No 1, Glossary, at 132 (full-text).

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