EBITDA

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Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization. EBITDA is calculated as EBITDA = {Revenue} - {Cost of Goods Sold} - {Selling, General, & Admin. Expense} - {Research & Development} = {Gross Profit} - {Selling, General, & Admin. Expense} - {Research & Development} Sometimes companies may have already deducted Depreciation and Amortization from Gross Profit. In this case Depreciation and Amortization needs to be added back when calculating EBITDA.