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Ebitda Vs Gross Revenue

oboloo Glossary

Ebitda Vs Gross Revenue

Ebitda, or Earnings Before Interest, Taxes, Depreciation and Amortization, is a measure of a company’s financial performance that looks at how much money the company has left after taking away all its operating costs. It gives a clear picture of how profitable a business is, regardless of its size or capital structure.

On the other hand, Gross Revenue is the total income generated from sales before subtracting any business expenses. This includes any discounts, taxes or duties incurred in the production of goods or delivery of services. Gross revenue does not include any cash payments received for previous debts or write-downs.

So when comparing Ebitda versus gross revenue, it’s important to remember that Ebitda provides a better measure of a company’s actual profits, while gross revenue tells you exactly how much was earned whether or not those earnings can be used to pay off debts or make future investments.

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