How does one figure a business' EBITDA?
Q. Can someone provide me with some sort of equation or direction on how to come up with a business' EBITDA? I know the acronym's meaning, but are we looking at simply gross revenues or do I need to subtract certain items from gross revenues? Thanks for any help provided.
Asked by irish_fire28 - Mon Aug 28 12:23:30 2006 - - 3 Answers - 0 Comments

A. Check-out this website...it has a host of business financial ratios that are very useful...
Answered by nickdc1960 - Fri Sep 1 11:36:47 2006

How is EBITDA different than cash flows from operations?
Q. How is EBITDA different than cash flows from operations?
Asked by tati brasil - Tue Nov 14 18:24:45 2006 - - 1 Answers - 0 Comments

A. Cash flow from operations takes into account various managerial influences, such as the timing of receivable collections, paying vendors, and inventory purchases / payments. This is really component of a Company's actual cash flow (operations, investing, and financing activities). EBITDA removes those balance sheet accounts which can be subject to managerial manipulation to come up with the Company's theoretical cash flow, based solely on the income statement.
Answered by Dave H - Tue Nov 14 18:37:10 2006

How to compute Enterprise Value for unlisted company, can EV/EBITDA be calculated without mkt cap?
Q. How to compute Enterprise Value for unlisted company, can EV/EBITDA be calculated without mkt cap?
Asked by Anand Roop - Sun Jun 22 03:32:09 2008 - - 1 Answers - 0 Comments

A. Sure, EBITDA can be easily calculated using the financial accounts of the company. EV (enterprise value) can be obtained from comparables in the same industry that are listed or recently sold. You can calculate replacement value and book value, or use the discounted futur cashflow value.
Answered by europeaninla - Sat Jun 28 11:36:50 2008

Is amortization of a capitalized patent go to amortization expense to be added back for EBITDA or OPEX?
Q. Is amortization of a capitalized patent go to amortization expense to be added back for EBITDA or OPEX?
Asked by jryan444 - Fri Feb 27 14:35:00 2009 - - 1 Answers - 0 Comments

What is the difference between bank EBITDA and EBITDA?
Q. What is the difference between bank EBITDA and EBITDA?
Asked by Financially curious - Mon Sep 10 15:18:12 2007 - - 1 Answers - 0 Comments

A. EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. Some companies report "bank EBITDA", meaning that they have a loan agreement where the bank uses a different calculation. Their calculation starts with regular EBITDA and is then adjusted for things that might be non-recurring or are otherwise allowed adjustments in the loan agreement. The definition would be different for each company.
Answered by just_the_facts_ma'am - Mon Sep 10 15:58:30 2007

what is a practical difference between OIBDA and EBITDA?
Q. what is a practical difference between OIBDA and EBITDA?
Asked by tanile7 - Sun Apr 6 15:25:57 2008 - - 1 Answers - 0 Comments

A. see here:
Answered by Alex - Sun Apr 6 16:10:11 2008

Difference between EBITDA and Gross Profit?
Q. Hi What is the difference between the 2? Specifically, what do i deduct from Revenue to get to EBITDA? thanks
Asked by evil cookie - Tue Dec 15 08:29:28 2009 - - 1 Answers - 0 Comments

A. Gross profit is revenue minus cost of goods sold. To get EBITDA subtract operating expenses, and other income and expenses, from gross profit.
Answered by jeff410 - Tue Dec 15 14:10:20 2009

Are Unrealized Gains/Losses included while calculating EBITDA?
Q. Are Unrealized Gains/Losses included while calculating EBITDA?
Asked by ankit_chhabra9 - Mon Mar 23 07:06:03 2009 - - 1 Answers - 0 Comments

A. Generally closing stock of raw material/WIP/Finished goods is valued at cost or market price whichever is lower. hence ebitda is after unrealised lossed but ignoring unrealised gains.
Answered by CA DEV KANT - Mon Mar 23 23:26:41 2009

What does LTM stand for in LTM sales, or LTM EBITDA?
Q. What does LTM stand for in LTM sales, or ltm ebitda?
Asked by kchobanov2001 - Thu Apr 20 01:39:47 2006 - - 2 Answers - 0 Comments

A. LTM = Last Twelve Months EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
Answered by long_duk_dong - Thu Apr 20 01:41:01 2006

Can EBITDA (Earnings before interest, taxes, depreciation and amoritization) be shown as EBITDA%? % of what?
Q. Can EBITDA (Earnings before interest, taxes, depreciation and amoritization) be shown as EBITDA%? % of what?
Asked by kyledclifford - Mon Apr 24 17:00:26 2006 - - 1 Answers - 0 Comments

A. It's usually a Dollar-figure. If presented as a percentage, it will be a percentage of revenues.
Answered by brickellcomedy - Mon Apr 24 17:03:22 2006

Any 2006 revenue, EBIT, EBITDA estimate for Franklin Electronic Publishers?
Q. Any 2006 revenue, EBIT, EBITDA estimate for Franklin Electronic Publishers?
Asked by kwok_james - Sat Jun 17 21:48:50 2006 - - 2 Answers - 0 Comments

A. Go to CBS Marketwatch.com it's one of the best sites for info on publically traded companies.
Answered by Ray S - Sat Jun 17 21:54:20 2006

Pearson Brothers recently reported an EBITDA of 7.5 million and net income of 1.8 million.?
Q. It had 2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? What are the formula's you used?
Asked by Liz C - Sat Apr 26 22:05:11 2008 - - 1 Answers - 0 Comments

A. The taxable income would be 7.5 less 2 million less depreciation and amortization. so 5.5-1.8 is the total available to pay taxes and depreciation. So you have 370,000 to pay depreciation and taxes. So depr will be 250K leaving taxes on 200K of 120K 3.7-Depr=(5.5-Depr)*40% 3.7-2.5=(5.5-2.5)*40% (2.0)*40%=1.2 Proof= 5,500,000 EBITDA (2,000,000) Interest (2,500.000)Depr & Amortization 3,000,000 Taxable (1,200,000) Tax 1.800,000 Profit
Answered by shipwreck - Sat Apr 26 22:38:50 2008

In Financial Reporting What is 'EBITDA'?
Q. In Financial Reporting What is 'EBITDA'?
Asked by Viji G - Thu Jun 21 06:16:21 2007 - - 2 Answers - 0 Comments

A. Earnings before interest, depreciation and amortization
Answered by BangkokBob - Thu Jun 21 06:21:15 2007

What is a enterprise multiplier for Restaurant or fast food industry?
Q. Hi, I am planning to buy fast food joint, popeyes chicken or del Taco. And I want to know what would be the enterprise multiplier to time it with EBITDA. I have the cash flow and all the information but I just want to make sure I am not over paying for the business. EBITDA x enterprise multiplier. Please help.
Asked by zohanR - Sat Jun 6 01:57:49 2009 - - 1 Answers - 0 Comments

A. Market Approach: Commonly used by real estate professionals, this approach determines the value of a business by using an "industry average" multiplier. This industry average is based on the price at which comparable businesses have sold for. As a result, an industry-specific formula is devised, usually based on a multiple of gross sales. These formulae, often called Rules of Thumb can be troublesome, because they may not focus on bottom line profits, earnings, EBIT or EBITDA. If an industry Rule of Thumb says that companies sell for 50% of annual gross sales, would you pay 50% of sales if the company was not profitable? Probably not. The appraiser therefore tries to focus on industry formulae where they are applied to a multiple of… [cont.]
Answered by Mr. Right - Sun Jun 7 22:52:14 2009

Is payroll tax considered a part of labor expense or is it considered tax?
Q. I'm calculating EBITDA for my business. And I need to determine if employer contribution to payroll tax is a part of operating expenses or taxes. Putting it in taxes improves my EBITDA number, but I don't know if that's right.
Asked by JS - Tue Mar 9 10:04:08 2010 - - -2 Answers - 0 Comments

question about EBITDA?
Q. Hi, Does EBITDA only include main business profit, or it includes earnings from other business operations(like minor investment)? I often see telecom companies use this data in their financial report, but seldomly see it's used in other industries. Why is that? Is it recognized only in telecom industry? Thnx.
Asked by WilmB - Tue Aug 7 11:46:42 2007 - - 2 Answers - 0 Comments

A. No - EBITDA is a recognized figure in all industries. Most companies do not report EBITDA in their financial statements, but it can be easily calculated. In case you didn't know this already, EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. So EBITDA = Net income+Interest expense+tax expense+depreciation expense+amortization expense. (you may have to get depreciation and amortization from the statement of cash flows) As far as minority investments are concerned, if the company has more than 50% ownership in a business, the results are included in the companies consolidated financials. ebitda or EBIT is typically perfered by analysts as being more representitive of the companies operations, and is better for… [cont.]
Answered by dmaniscool21 - Tue Aug 7 12:02:07 2007

What should I look for when buying an oil well for investment?
Q. I'm thinking of investing in producing oil wells. What should I: look for? I calculated a 16% return, but how do I factor in depletion rate, proven reserves, etc? How do I know if its a good deal and are there any formulas? ie 6x EBITDA
Asked by supascorch - Fri May 19 10:39:53 2006 - - 4 Answers - 0 Comments

A. You need a history of production, month by month to plot a Decline Curve. From that, you can extrapolate or extend the curve to its economic limit. That will give you a reserve estimate, future cash flow, and what the oil is worth. If you can get the well records, you can see if there are any extraneous problems or expenses, like hole problems that cause frequent rod parts or holes in the tubing, or an increasing rate of salt water production. That water has to be hauled off at your expense. I'm assuming the wells are pumping; how new is the equipment and what is the salvage value? If the wells are fairly old, say more than 10 years, and not very deep, salvage value of equipment recovered usually almost equals plugging cost, unless you… [cont.]
Answered by dredude52 - Fri May 19 15:05:36 2006

Is Gross Profit and EBITDA the same ?
Q. Is Gross Profit and EBITDA the same ?
Asked by Raj A - Wed Dec 6 18:32:54 2006 - - 1 Answers - 0 Comments

A. These two numbers are very different. They both are found in the income statement, but Gross Profit is generally found right below cost of goods sold. EBITDA is earnings before interest, taxes, depreciation, and amortization.
Answered by anonymus - Wed Dec 6 18:37:24 2006

EBITDA & Finding Interest?
Q. How do I calculate the interest expense? I am stumped! Income statement: Fraser Corporation has announced that its net income for the year ended June 30, 2008, is $1,353,412. The company had an EBITDA of $4,455,060.96, and its depreciation and amortization expense was equal to $957,472.53. The company's tax rate is 34 percent. What is the amount of interest expense for Fraser Corporation?
Asked by Jonny - Mon Jan 11 21:46:01 2010 - - 1 Answers - 0 Comments

A. EBITDA means Earnings before Interest, Tax, Depreciation and Amortization. If you know all of the items except one, you can solve for the missing item. First you need to calculate the earnings before tax amount. They tell you that Net income = $1,353,412 The Tax rate = 34%, so the company's Earnings before Tax amount is calculated as: $1,353,412 / 0.66 = $2,050,624 Add depreciation and amortization back to that figure and get: $2,050,624.24 + $957,472.53 = $3,008,096.77. The difference between that, and the EBITDA amount will be the interest expense for the year. $4,455,060.96 - $3,008,096.77 = $1,446,964.19. The $1,446,964.19 is your interest expense for the year
Answered by Marc - Tue Jan 12 08:15:21 2010

EBITDA margins in interactive media sector have grown from 2003 to 2007, from 20% in 2003, to 34% in 2007. Why
Q. Please provide links to sources to back up your answers. Doing this for my school research.
Asked by nisha s - Tue May 1 15:35:16 2007 - - 1 Answers - 0 Comments

A. The sector itself has seen exponetial growth (You can find a site for this). The real question though is why is EBITDA bad, or how does EBITDA affect the way things are reported? For that, see the link below and go to the Bad and the Ugly section. You can draw some conclusions, such as they are reporting only their expected cash, not including their costs (such as amortization, cost to expand (capital investments) etc). I know this is not 100% the answer, but if I give it all to you, then what will you learn, right? Good luck!
Answered by redrumkev911 - Thu May 3 18:23:09 2007