EBITDA

American  

[ee-bit-do] / ˈi bɪtˌdɒ /

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.

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EBITDA British  

abbreviation

1. Often shortened to: EBIT.  earnings before interest, tax, depreciation, and amortization

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Usage

What does EBITDA mean? EBITDA is a financial abbreviation that stands for Earnings Before Interest, Tax, Depreciation, and Amortization.

Etymology

Origin of EBITDA

First recorded in 1985–90

Example Sentences

It will create a supplier with $11 billion in sales and $1.7 billion in earnings before interest, taxes, depreciation, and amortization, or EBITDA.

From Barron's • Jun. 11, 2026

The company told analysts it would achieve $30 billion in revenue for the full year and $3.8 billion in adjusted EBITDA.

From Los Angeles Times • May 4, 2026

Using the pro forma earnings measure known as adjusted EBITDA, which excludes some expenses, it doubled its profit to $128 million.

From New York Times • Mar. 15, 2024

Cardiff Airport uses EBITDA, which records earnings before tax, interest and other items, to report on its financial performance.

From BBC • Feb. 14, 2024

Based on its stock price, Viskase is valued at only 5.4 times its adjusted 12-month EBITDA, according to Refinitiv Eikon.

From Reuters • May 5, 2023