Earnings before Interest, Taxes and Amortization
|This article needs additional citations for verification. (November 2014)|
Earnings before Interest, Taxes and Amortization (EBITA) refers to a company's earnings before the deduction of interest, taxes and amortization expenses. 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.
- "EBITA". Retrieved 2014-11-30.
|This economics-related article is a stub. You can help Wikipedia by expanding it.|