EBITDA
View All TermsEarnings 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.