Term of the Day: EBITA

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	INVESTOPEDIA Term Of The Day November 6, 2015 EBITA EBITA is an acronym for earnings before interest, taxes and amortization. To calculate a company's EBITA, start with its earnings before tax (EBT), which can be found on the income statement, and add interest and amortization expenses back in. EBITA is a variation of the more commonly used EBITDA, which deducts depreciation expenses. Both are used to gauge a company's operating profitability, that is, the earnings it generates in the normal course of doing business, ignoring capital expenditures and financing costs. Both measures are sometimes considered indications of cash flow Since certain industries require significant investment in fixed assets, EBITDA can distort a company's profitability by ignoring depreciation. In such cases, EBITA is a more appropriate measure. When amortization is equal to zero, EBITA is equal to EBIT. Breaking It Down: As a telecom, AT&T Inc. (T) must invest in, maintain and periodically replace a massive portfolio of... Read More Related to "Days Sales Outstanding - DSO" EBITA - Video EBITA stands for earnings before interest, taxes and amortization. EBITA measures a company's full profitability before... Read More EBITDA: Challenging The Calculation EBITDA has a bad rap in the financial world, but does this financial measure really deserve the... Read More A Clear Look At EBITDA Normally, investors focus on cash flow, net income and revenue as the basic measures of... Read More Recently Added Definitions Capital Markets Capital markets are markets for buying and selling equity and debt instruments. Capital markets channel savings and... Read More Profit and Loss Statement (P&L) A profit and loss statement (P&L) is a financial statement that summarizes the revenues, costs and expenses... Read More Related Definitions Depreciation Amortization Profit and Loss Statement (P&L) Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA Earnings Before Interest, Tax and Depreciation - EBITD Past Terms of the Day Earnings Before Interest & Tax - EBIT Days Sales Outstanding - DSO Days Sales Of Inventory - DSI Tombstone Halloween Strategy You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Manage Subscriptions Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: