Earnings before interest, taxes, and amortization
Earnings before interest, taxes, and amortization (EBITA) refers to a company's earnings before the deduction of interest, taxes and amortization expenses.[1] It is a financial indicator used widely as a measure of efficiency and profitability.
EBITA margin can be calculated by taking the Profit Before Taxation (PBT/EBT) figure as shown on the Consolidated Income Statement, and adding back Net Interest and Amortization. Often, Amortization charges are zero and therefore EBIT = EBITA.
EBITA has been cited by buyside investors as a useful metric to be used as a replacement for, or in conjunction with, EBITDA multiples, as corporations continue to present increasing levels of intangible-based amortization.
References
See also
- Earnings before interest and taxes (EBIT)
- Earnings before interest, taxes, and depreciation (EBITD)
- Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR)
- Earnings before interest, taxes, depreciation, and amortization (EBITDA)
- EV/EBITDA
- Operating income before depreciation and amortization (OIBDA)
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