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> excludes multiple costs including interest, taxes, depreciation and amortisation That is exactly what "EBIDTA" means. And EBIDTA is pretty standard. The "IDT
by vineyardmike 5y ago
> excludes multiple costs including interest, taxes, depreciation and amortisation
That is exactly what "EBIDTA" means. And EBIDTA is pretty standard. The "IDTA" is not nearly as useful to gauge the health of a company as EBIDTA.
Eg. companies that don't run a profit don't pay taxes, so if you make $0 after taxes, you basically have your whole tax amount to spend next year and it makes no difference.
> [EBITDA] is derived by subtracting from revenues all costs of the operating business (e.g. wages, costs of raw materials, services ...) but not depreciation, amortisation, interest, lease expenses, and taxes.
https://en.wikipedia.org/wiki/Earnings_before_interest,_taxes,_depreciation_and_amortization https://en.wikipedia.org/wiki/Earnings_before_interest,_taxe...