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. 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.

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)