Dernière modification le 13/11/2022 à 11:00 par Kate Griss

EBITDA stands for Earnings Before Interest Tax, Depreciation and Amortization. It is translated into French as : Earnings Before Interest, Taxes, Depreciation and Amortization. It is the equivalent of the Gross Operating Income (EBE). However, unlike the EBE, the EBITDA does not take into account the tax charges and focuses only on the costs related to the products or services created by the company.

To be clear, EBITDA is used to evaluate the profitability of your company’s production process. This indicator represents the profit generated by your operating cycle without taking into account tax expenses, loan interest and depreciation. This allows you to measure the performance of your company’s operating cycle independently of its financing and investment policy.

How to interpret the EBITDA result?

After calculating the EBITDA, if you obtain a result greater than zero, it means that the operating cycle of your company is profitable. On the other hand, if the result is less than zero, it shows that your company has a loss-making production process that does not create value.

You can use our tool to calculate the EBITDA of your company!