Earnings Before Interest, income Taxes, Depreciation and Amortization (EBITDA)

Profit before tax excluding net interest (income) expenses, and depreciation and amortization. Earnings is defined as operating and non-operating profits like interest, dividends received from other investments. Depreciation is the non-cash charge to the balance sheet which is made in writing off an asset over a period. Amortisation is the payment of a loan in instalments.