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Earnings before interest and taxes

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118: 75: 419: 437: 117:) first evaluates a firm's fundamental earnings potential (reflected by earnings before interest, taxes, depreciation and amortization ( 395: 485: 311:. Thus, it can be calculated by subtracting the interest from EBIT (earnings before interest and taxes). 411: 189: 334:
Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs
62: 36: 387: 8: 32: 154: 125: 121:) and EBIT), and then determines the optimal use of debt versus equity (equity value). 391: 110: 86: 114: 490: 376: 455: 303:) is the money retained by the firm before deducting the money to be paid for 479: 441: 185: 82: 383: 20: 271: 129: 44: 345: 132:
is later obtained by subtracting interest and taxes from the result.
128:, selling and administrative expenses) are subtracted from revenues. 308: 40: 97:
EBITDA = earnings interest, taxes, depreciation, and amortization
333: 58: 415: 340:
Earnings before interest, taxes, depreciation, and amortization
339: 350: 327: 321: 304: 89:= EBIT – (non-operating profit) + (non-operating expenses) 109:
A professional investor contemplating a change to the
35:
that includes all incomes and expenses (operating and
351:
Operating income before depreciation and amortization
136:Example statement of income (figures in thousands) 375: 328:Earnings before interest, taxes, and depreciation 322:Earnings before interest, taxes, and amortization 477: 373: 438:"How are EBIT and operating income different?" 431: 429: 374:Bodie, Zvi; Kane, Alex; Marcus, Alan (2005). 177:Selling, general and administrative expenses 412:"Earnings before interest and, taxes (EBIT)" 369: 367: 426: 231:Earnings before interest and taxes (EBIT) 78:– (depreciation and amortization expenses) 364: 74:EBIT = (net income) + interest + taxes = 290: 478: 456:"What is EBIT? definition and meaning" 435: 247:Income before interest expense (IBIE) 124:To calculate EBIT, expenses (e.g. the 263:Earnings before income taxes (EBT) 61:for EBIT when a firm does not have 13: 307:. EBT excludes the money paid for 25:earnings before interest and taxes 14: 502: 422:from the original on Jun 5, 2023. 436:Murphy, Chris B. (2019-07-11). 448: 404: 1: 357: 65:and non-operating expenses. 7: 315: 113:of a firm (e.g., through a 104: 31:) is a measure of a firm's 10: 507: 68: 16:Measure of a firm's profit 378:Essentials of Investments 207:Total operating expenses 171: 140: 100:OPEX = operating expense 57:are sometimes used as a 297:Earnings before taxes 291:Earnings before taxes 223:Non-operating income 486:Fundamental analysis 81:operating income = ( 63:non-operating income 172:Operating expenses 137: 255:Financial expense 155:Cost of goods sold 135: 126:cost of goods sold 460:investorwords.com 288: 287: 239:Financial income 215:Operating profit 111:capital structure 498: 470: 469: 467: 466: 452: 446: 445: 433: 424: 423: 408: 402: 401: 381: 371: 312: 138: 134: 115:leveraged buyout 55:operating profit 51:Operating income 506: 505: 501: 500: 499: 497: 496: 495: 476: 475: 474: 473: 464: 462: 454: 453: 449: 434: 427: 410: 409: 405: 398: 372: 365: 360: 318: 295: 293: 199:Other expenses 107: 71: 17: 12: 11: 5: 504: 494: 493: 488: 472: 471: 447: 425: 403: 396: 362: 361: 359: 356: 355: 354: 348: 343: 337: 331: 325: 317: 314: 292: 289: 286: 285: 282: 278: 277: 274: 268: 267: 264: 260: 259: 256: 252: 251: 248: 244: 243: 240: 236: 235: 232: 228: 227: 224: 220: 219: 216: 212: 211: 208: 204: 203: 200: 196: 195: 192: 182: 181: 178: 174: 173: 169: 168: 165: 161: 160: 157: 151: 150: 147: 146:Sales revenue 143: 142: 106: 103: 102: 101: 98: 91: 90: 79: 70: 67: 15: 9: 6: 4: 3: 2: 503: 492: 489: 487: 484: 483: 481: 461: 457: 451: 443: 439: 432: 430: 421: 417: 413: 407: 399: 397:9780072510775 393: 389: 385: 380: 379: 370: 368: 363: 352: 349: 347: 344: 341: 338: 335: 332: 329: 326: 323: 320: 319: 313: 310: 306: 302: 298: 283: 280: 279: 275: 273: 270: 269: 265: 262: 261: 257: 254: 253: 249: 246: 245: 241: 238: 237: 233: 230: 229: 225: 222: 221: 217: 214: 213: 209: 206: 205: 201: 198: 197: 193: 191: 187: 184: 183: 179: 176: 175: 170: 166: 164:Gross profit 163: 162: 158: 156: 153: 152: 148: 145: 144: 139: 133: 131: 127: 122: 120: 116: 112: 99: 96: 95: 94: 88: 84: 80: 77: 73: 72: 66: 64: 60: 56: 52: 48: 46: 43:expenses and 42: 38: 37:non-operating 34: 30: 26: 23:and finance, 22: 463:. Retrieved 459: 450: 442:Investopedia 406: 377: 300: 296: 294: 272:Income taxes 190:amortization 186:Depreciation 123: 108: 92: 83:gross income 54: 50: 49: 28: 24: 18: 384:McGraw Hill 281:Net income 480:Categories 465:2019-10-03 386:. p.  358:References 130:Net income 47:expenses. 45:income tax 21:accounting 346:EV/EBITDA 336:(EBITDAR) 167:$ 12,495 149:$ 20,438 39:) except 420:Archived 342:(EBITDA) 316:See also 309:interest 284:$ 2,183 276:$ 1,027 266:$ 3,210 250:$ 3,400 234:$ 3,355 218:$ 3,225 210:$ 9,270 180:$ 8,172 159:$ 7,943 141:Revenue 105:Overview 41:interest 353:(OIBDA) 330:(EBITD) 324:(EBITA) 69:Formula 59:synonym 491:Profit 416:NASDAQ 394:  258:$ 190 226:$ 130 202:$ 138 194:$ 960 119:EBITDA 93:where 76:EBITDA 33:profit 305:taxes 242:$ 45 392:ISBN 188:and 87:OPEX 85:) – 53:and 29:EBIT 388:452 301:EBT 19:In 482:: 458:. 440:. 428:^ 418:. 414:. 390:. 382:. 366:^ 468:. 444:. 400:. 299:( 27:(

Index

accounting
profit
non-operating
interest
income tax
synonym
non-operating income
EBITDA
gross income
OPEX
capital structure
leveraged buyout
EBITDA
cost of goods sold
Net income
Cost of goods sold
Depreciation
amortization
Income taxes
taxes
interest
Earnings before interest, taxes, and amortization
Earnings before interest, taxes, and depreciation
Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs
Earnings before interest, taxes, depreciation, and amortization
EV/EBITDA
Operating income before depreciation and amortization


Essentials of Investments

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