FULL FORM OF EBITA EBITDA stands for Earnings before Interest, Tax, Depreciation, and Amortisation. It is a economical tool used to provide insights into a company's profitability. It is used to evaluate company's operating performance. It analyses whether the company can generate income from its core business activities. While doing so, it excludes the impact of financing costs, tax obligations and non-cash expenses like depreciation and amortisation. Investors, analysts and businesses use EBITDA calculations to compare profitability and evaluate the performance of any company. KEY WORDS WHAT IS DEPRECIATION? The concept of depreciation recognizes that assets decline its value over a period of time. Depreciation is a methodical way to asses the reduced cost of any equipment and fixed asset of the company over a period of time. By smoothing out the financial impact of asset purchases, depreciation affects a business’s income statement and balance sheet. WHA...
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