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Manu

Building altragnan • 2m

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

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Replies (2)

Tanuj Kelkar

Go to • 2m

It's always false.

Anonymous 1

Hey I am on Medial • 2m

Good explanation 💯

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Mridul Das

Introvert! • 3m

🚀 EBITDA Explained in Simple Terms! 🚀 Ever wondered how much money a business actually makes before all those sneaky expenses like taxes, interest & depreciation? That’s where EBITDA comes in! 🔹 It shows how profitable a company really is! 🔹 Su

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Vikas Acharya
•

Medial • 7m

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

PRATHAM

Experimenting On lea... • 1y

📢 WTF is EBITDA ❓🤔 EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization ( Amortization in simple words is like repayment of installment/loans). It’s like looking at how much money a company makes from its core busine

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PRATHAM
•

Medial • 10m

📊 EBITDA Positive ≠ Profitable: The Startup Illusion/delusion EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is just a fancy term used to prevent yourself to be called loss making and shows reduced losses 1. Depreciation

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Account Deleted

Hey I am on Medial • 1y

Hello Everyone 🤩💭, Today's topic is EBITDA, Gross Margin and Operationally Positive terms: EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) - > 🤑 •Measures overall financial performance and cash flow potential •Usef

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Sanskar

Keen Learner and Exp... • 3m

Complicated Business Terms Simplified PART: 1 ROI (Return on Investment): How much profit or value an investment generates compared to its cost. TAM (Total Addressable Market): The total demand for a product/service globally, assuming no competiti

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Arcane

Hey, I'm on Medial • 8m

Profitability Metrics These are the stages of profitability every founder should be familiar with (Refer the table below) In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs. Next, target transacti

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Inactive

AprameyaAI • 1y

Today in the Cafe! EBITDA: Earnings before interest, taxes, depreciation, and amortization, a method for measuring a company's financial health and ability to generate cash. Mezzanine Financing: A hybrid form of financing that is often a mix of de

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Gautam Ambani

Money Magnet • 1y

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

1 Reply

Ronak Patel

Here you go! • 11m

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