Earnings before interest, taxes, and amortization

Earnings before interest, taxes, and amortization (EBITA) refers to a company's earnings before the deduction of interest, taxes and amortization expenses. It is a financial indicator used widely as a measure of efficiency and profitability. EBITA margin can be calculated by taking the Profit Before Taxation (PBT/EBT) figure as shown on the Consolidated Income Statement, and adding back Net Interest and Amortization. Often, Amortization charges are zero and therefore EBIT = EBITA.

Earnings before interest, taxes, and amortization

Earnings before interest, taxes, and amortization (EBITA) refers to a company's earnings before the deduction of interest, taxes and amortization expenses. It is a financial indicator used widely as a measure of efficiency and profitability. EBITA margin can be calculated by taking the Profit Before Taxation (PBT/EBT) figure as shown on the Consolidated Income Statement, and adding back Net Interest and Amortization. Often, Amortization charges are zero and therefore EBIT = EBITA.