Earnings before the accounting adjustments.
A worked example
Starting figures
- Net income
- $62,000
- Interest
- $9,000
- Tax
- $15,000
- Depreciation & amortisation
- $22,000
What it returns
- EBITDA
- $108,000
- Add-backs
- $46,000
How to read the results
With the defaults above, ebitda works out at $108,000.