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What Is EBITDA? Definition and Formula

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Finance professionals use EBITDA, calculated from details reported in annual financial statements, to determine a company’s profitability. Essentially, EBITDA looks at how much money a company makes before expensing taxes and interest without considering the depreciation of assets. EBITDA Definition EBITDA is a measure of …

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EBITDA
The Accounting Equation, Explained

The accounting equation is a formula and principle in accounting that says a company’s assets must be equal to its liabilities and equity — otherwise, the company hasn’t recorded its transactions accurately. This equation relies on the double-entry system of accounting, where every transaction results in positive or negative changes to at least two of …

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Accountants balancing accounts using accounting equation