Hi Runthumper,
EBIT = Earnings before interest and tax.
EBITA = Earnings before interest, tax and amortisation.
EBITDA = Earnings before interest, tax, depreciation and amortisation.
EBITDA - "A financial calculation most useful in private market value.
It is net income plus interest expense, income tax, amortization and
depreciation."
Here is an example of EBITDA:
http://www.taxopedia.com/offsite.asp?URL=http://www.neodata.com/neonews/spring96/SIDEBAR.HTM
AMORTIZATION -"The deduction of capital expenses over a specific
period of time. Similar to depreciation. A method of measuring the
consumption of the value of long-term assets like equipment or
buildings.
Think of this as claiming the decrease in value on your car every
year. If you bought your car new for $20,000 and after the first year
it is worth $17,000 theoretically you could amortize the $3,000 for
tax and financial purposes.
Amortization is claimed on Form 4562."
http://www.taxopedia.com/terms/a/amortization.asp
DEPRECIATION - "An expense recorded to reduce the value of a long-term
tangible asset. Since it is a non-cash expense, it increases free cash
flow while decreasing the amount of a company's reported earnings.
A decrease in the value of a particular currency relative to other
currencies.
http://www.taxopedia.com/terms/d/depreciation.asp
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I hope this helps!
regards,
jackburton-ga
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