EBITA

EBITA is a business management code and says something about the company's earnings in a given time period.

EBITA is the Abbreviation for earnings before interest, taxes and amortization. Literally translated, this means that earnings before interest, taxes, depreciation and amortization of intangible assets. In practical application, however, it has the meaning of "profit before interest, extraordinary items, taxes and amortization of goodwill ." So there are extraordinary (one-time ) costs and expenses ignored, as interest, other financing income or expenses, taxes, depreciation and amortization of goodwill. Also " cleanup of profit " or " out arithmetic of certain positions " called.

A related with the EBITA ratio is EBTA. Here the arithmetic out of the financial results is eliminated.

Calculation

An alternative calculation method cleans up the profit according to the importance of not only amortization for goodwill amortization, but all amortization of intangible assets. This method is applied, among others, all in accordance with U.S. GAAP reporting entity.

Here EBITA and EBITDA differ from EBTA, are adjusted when the getting all the depreciation.

Application

In the case of pro rata amortization of goodwill EBITA and EBTA neutralize their effects gewinnverzerrende and thus facilitates the evaluation of operating income or profit before taxes. Since in the U.S. accounting system U.S. GAAP and IFRS in the international system ( but not in accounting according to HGB) the pro rata amortization of goodwill were abolished, this application of EBITA and EBTA has lost meaning.

In the case of extraordinary goodwill amortization EBITA and EBTA neutralize their unique impact on the operating result and profit before tax and thereby facilitate its extrapolation to future operating results.

In the financial analysis, the different calculation methods and, accordingly, different meanings of this ratio are observed. Before an assessment of the EBITA or EBTA is to clarify what exactly is meant.

Additive

In recent times, comes in many balance sheets, an additional R, so EBITAR. This stands for rents ("Rent ").