Guest
Guest
Jun 03, 2025
4:50 AM
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calculate ebitda by most simply by using the formula:
Operating Profit is added to Depreciation and Amortization to get EBITDA.
You can find both operating profit (EBIT) and depreciation and amortisation items either in the notes or on the cash flow statement. The method relies on the fact that you already have EBIT available. By subtracting non-cash fees and financial decisions, EBITDA reveals if a company operates efficiently. Most professionals use it to check how profitable businesses are, especially in the context of mergers or choosing where to invest.
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