EBITDA
Earnings before interest, taxes, depreciation, and amortization, commonly known as EBITDA, is a measure of a company's profitability of the operating business only, before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base. It is derived by subtracting from revenues all costs of the operating business but not decline in asset value, cost of borrowing and obligations to governments. Although certain leases have been capitalized on the balance sheet since IFRS 16, its expenses are often still adjusted back into EBITDA given they are deemed operational in nature.
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