EBITDA: the meaning
Operating profit before depreciation: what the normal business earns in cash, before interest and taxes.
EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It makes companies with high and low investment more comparable.
How to read it
It needs to be positive to repay investments and loans. Banks often use it to judge debt.
On Nummo you find this figure in the Figures tab of every company that filed annual accounts, over the years. In the tables, a small card gives this explanation in short.
How to calculate it
operating profit (9901) + depreciation (630) (in belgian annual accounts: 9901 + 630)
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
More: Calculate EBITDA: formula, example and margin →