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How can I work out what EBITA is?
calculate ebitda by adding interest, tax expenses and amortization to the company’s net income. The way to apply the formula is:
EBITA equals Net Income, Interest, Taxes and Amortization expenses in total.
It allows us to understand how the company is carrying out its business before the impact of its budgeting and amortization. While EBITDA does not account for depreciation, EBITA does which makes it more conservative. Many times, it is used to assess how a business operates and to check the profitability of companies with large costs for intangible assets.
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