EBITDA

[ ee-bit-do ]

noun

, Finance, Business.

1. earnings before interest, taxes, depreciation, and amortization: a widely used measure of the profitability (or lack thereof) resulting from a company’s core operations, calculated by subtracting from total revenue the cost of goods (or services) sold, sales and marketing expenses, and the cost of overhead. Other costs that may be indirectly related to operations, as interest (paid on company debt), taxes (paid on profits), and depreciation and amortization (generally of property and equipment), are not taken into account when calculating EBITDA.

EBITDA

abbreviation for

1. earnings before interest, tax, depreciation, and amortization Often shortened toEBIT

Word History and Origins

Origin of EBITDA¹

First recorded in 1985–90