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This instrument is very good for evaluating how much a company earns from its production capacity of goods and services, that is, to see how well or poorly the operational part of the company is doing. In this order of ideas, if the EBITDA gives a negative result it means that we are losing money month after month, so we must make changes quickly or else we will go bankrupt in less time than we imagine. However, if it comes out positive it means that the operation is profitable, so we can continue to make money from the sale of that product or service.  

TEST How much do you know about business? Tools, concepts, business methodologies... Test yourself with India Car Owner Phone Number List it won't take you more than minutes) Take the test! FREE classes What would it be like to take one of our master's degrees? The best thing is that you try it yourself with these totally FREE classes! Sign up and live the experience of being part of the business school that has put the traditional educational model in check. See free classes! EBITDA If you have come this far, it is very likely that you already know what the differences are between EBITDA and EBITDA.  



If you think about it you will realize that both concepts begin with the same initials , so the contrast is in the last terms. Basically, EBITDA does not take into account depreciation and amortization expenses , so we can say that its result is further from the true numbers of the business since we leave out relevant costs that reflect the viability and economic health of the company. Therefore, EBITDA is a much more general indicator, while EBIT goes much deeper into the company's numbers. How is EBITDA calculated? Calculating EBITDA is just as simple as calculating EBIT. EBITDA= EBIT + depreciation expenses + amortization .