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Manu

Building altragnan • 11h

Definition: EBITDA is a financial metric that measures how much money a company earns from its operations before deducting interest, taxes, depreciation, and amortization. It's useful for evaluating a company's operational profitability. Why is EBITDA important for businesses? Helps businesses understand how much money they’re generating from core operations. Useful for investors and lenders to assess company profitability. Acts as a scorecard to measure how much money a company is making. How is EBITDA calculated? To calculate EBITDA: 1. Start with revenue. 2. Subtract cost of goods sold. 3. Subtract operating expenses (like salaries and rent). EBITDA vs Net Income EBITDA excludes depreciation, taxes, and interest. Net Income includes all those expenses and represents actual profit. EBITDA Formula (Expanded): EBITDA = Net Income Interest Expense Taxes Depreciation Amortization

2 replies12 likes

Replies (2)

Tanuj Kelkar

Go to • 4h

It's always false.

0 replies

Anonymous 1

Hey I am on Medial • 9h

Good explanation 💯

0 replies

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What is EBITDA ? Get to know about earnings before Intrest, tax , depreciation and Amortization!

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Gautam Ambani

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LOL Same story of all startups waanna be listed on BSE , NSE. Don't give a shit about profit until want to go public. Do profit before a year or two wanted to do IPO. OYO has reported a profit after tax of nearly INR 100 crore ($12 million) for fisc

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Wth is CM1, CM2???? CM - Contribution Margin Contribution margin is the selling price per unit minus the variable cost per unit. CM1 = Contribution margin one= selling price- material costs - logistics costs. CM2= Contribution margin two= sellin