what is the difference between profit before taxes and ebitda 
while profit before tax shows a company s profits before taking into account its tax costs earnings before interest tax depreciation and amortization ebitda includes non cash activities like depreciation and amortization in this way ebitda is used as a measure for profitability but critics have said that it is less reflective of a company s performance since it leaves out these important aspects in this way showing ebitda versus net income can make a company look more attractive but may be less indicative of a company s overall performance since it ignores a company s asset costs the bottom lineprofit before tax can be arrived at through taking operating profit from the income statement minus its interest payments and adding interest earned often it is the first step in calculating net profit although it doesn t consider the impact of taxes while it isn t typically used as a key performance indicator profit before tax can allow you to isolate the impact of taxes on a company comparing the profit before tax margin and net margin can show how a company is affected by tax costs which can have a material impact on the company and its overall cost efficiencies 