EBITDA adds depreciation and amortization back to operating profit.
| Input | What it means |
|---|---|
| Operating Profit | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Amortization Expenses | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Depreciation Expenses | Use the measured or stated value for this item, with the unit or category shown beside the field. |
Operating profit 80,000 plus depreciation 15,000 and amortization 5,000 gives 100,000.
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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