Ebita Vs Profit

Ebita Vs Profit

Ebita Vs Profit

oboloo’s Glossary

EBITA is an acronym for Earnings Before Interest, Taxes and Amortization. It is a measure of a company’s financial performance that factors out income tax expenses and other non-operating costs. Put simply, it measures the revenue a company generates before deducting its operating expenses.

Profit, on the other hand, is a measure of how much money a company has left over after all deductions have been made from revenues. This includes not only operating and amortization expenses but also income taxes, interest payments, and other non-operating expenses. Profit is often used to evaluate the success or failure of a business.