What does EBITDA means | and How it will be calculated?

EBITDA means Earning before Interests, Tax, Depreciation and Amortization.

Right here is really a step by step tips about how you can calculate a Company's EBITDA primarily based on the financial statement:

1. Take the Profit just before Tax number from the income statement
2. Add: Interest (constantly, this amount is often seen in cash flow statement.
3. Add: Depreciation ( possibly: depreciation amount is often seen in notes to accounts of ( Property, Plant & Equipment - PPE  cash flow statement)
4. Add: Amortization ( possibly: amortisation amount is often seen in notes to accounts of Intangible Assets cash flow statement)