What’s EBIDTA?

EBIDTA is a financial acronym that stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” In business planning, EBIDTA can be used to present potential equity investment exits, or it can be used in the merger and acquisition process.

It’s also a basic measure of business health. EBIDTA is often used as a comparison to other businesses in the same sector. EBIDTA removes expenses from the “bottom line” like depreciation and amortization which don’t apply to bottom-line performance.

Leave a Reply

Your email address will not be published. Required fields are marked *