Ebitda Formula How To Calculate Ebitda With Examples
What is the EBITDA Formula? Mathematically, it can be calculated using two methods Method 1 – Starts with Net Income EBITDA = Net Income + Interest Expense + Taxes + Depreciation & Amortization Expense Method 2 – Starts with EBIT EBITDA + EBIT + Depreciation & Amortization Expenseor EBITDA = EBT + Interest Expense + Depreciation & Amortization ExpenseAmortization ExpenseAmortization of Intangible Assets refers to the method by which the cost of the company’s various intangible assets (such as trademarks, goodwill, and patents) is expensed over a specific time period....