Glossary · from the DESK dictionary
EBITDA
A company's earnings before interest, taxes, depreciation, and amortization.
In plain words
Shows a company's operating earning power, independent of financing structure, tax burden, and depreciation policy.
Formula
EBITDA = Net income + Interest + Taxes + Depreciation + Amortization
Adds back to net profit all items unrelated to the core operating business.
What it means for traders
One of the most widely used metrics for comparing operating profitability across companies with different capital structures.
Common pitfalls
Ignores real costs like interest and capex needs — can flatter a company's actual financial health.
Related terms
Adjusted EBITDA · Amortization · Debt/EBITDA Ratio · Earnings Before Interest, Depreciation and Amortization (EBIDA) · EBIT · EBITDA Margin · EBITDAR · EV/EBITDA Multiple · Income Statement
From the DESK dictionary. For information only, not investment advice.
This is one page of many.
- The DESK dictionary explains more than 9,400 market terms like this one, in English and German – searchable, sorted by topic and difficulty, with favourites.
- Plus the Macro Terminal with more than 900 indicators per country, company pages and a weekly report.
Also open to read: Glossary A–Z · Free calculators · Weekly report archive
DESK is a research tool and not investment advice. Page generated: 2026-10-12.