Do you think it is a necessary type of calculation

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We take as a basis the net profit obtained: , According to the concept, these are “earnings before: interest…” Therefore, to the profit we will add the interest, which is found in the financial expenses: , + , = , We continue with the "taxes", which is nothing more than taxes, so we add them too: , + , = , Then it takes into account depreciation, or loss in value of the company's fixed assets. To do this, the depreciations of "administrative expenses" and "sales expenses" are added, if any. In our example, it only applies to administrative expenses, therefore, only that value is used.


And finally the amortizations, which are all the expenses Belarus WhatsApp Number that the company has invested to be able to establish itself. In our example, the amortizations are found in administrative expenses, but it may also be the case that they are also in sales expenses depending on the type of company. , + , = , The EBITDA then for the present example is therefore a total of , net profits. If you wish, for example, to also calculate the EBIT, you only have to subtract the depreciation and amortization expenses, and we will obtain said result.





In conclusion, EBITDA is a measure of potential, that is, it calculates the level of potential that a company has to be able to generate profits according to the profitability of the business. To do this, the net profits obtained are calculated without taking into account some important financial expenses, but with the intention of knowing the expenses entirely from the company's own activities. It is important not to forget that this calculation is to know these potentialities, but it does not define as such the real financial situation of the company. Would you apply this type of meter for your company ?  We would love to read you in the comments.