what is ebitda 
ebitda or earnings before interest taxes depreciation and amortization is an alternate measure of profitability to net income by excluding depreciation and amortization as well as taxes and debt payment costs ebitda attempts to represent the cash profit generated by the company s operations ebitda is not a metric recognized under generally accepted accounting principles gaap some public companies report ebitda in their quarterly results along with adjusted ebitda figures typically excluding additional costs such as stock based compensation increased focus on ebitda by companies and investors has prompted criticism that it overstates profitability the u s securities and exchange commission sec requires listed companies reporting ebitda figures to show how they were derived from net income and it bars them from reporting ebitda on a per share basis 1investopedia zoe hansenebitda formulas and calculationif a company doesn t report ebitda it can be easily calculated from its financial statements software like excel can make the calculation process easy the earnings net income tax and interest figures are found on the income statement while the depreciation and amortization figures are normally found in the notes to operating profit or on the cash flow statement there are two ebitda formulas one based on net income and the other on operating income both of which will arrive at basically the same result net income is operating income minus non operating expenses such as taxes and interest the respective ebitda formulas are ebitda net income taxes interest expense d aorebitda operating income d awhere d a depreciation and amortization begin aligned text ebitda text net income text taxes text interest expense text d a text or text ebitda text operating income text d a textbf where text d a text text depreciation and amortization end aligned ebitda net income taxes interest expense d aorebitda operating income d awhere d a depreciation and amortization 