EBITDA

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Term Definition
EBITDA

What is the signification / definition of EBITDA in the hospitality industry?

This KPI is used to define how profitable a company or business is in reference to its operations (the profit on the products that the company produces and sells).

EBITDA means : Earnings Before Interest, Taxes, Depreciation and Amortization.

 

EBITDA is the result of taking the company's earnings before interest, tax, amortization and depreciation and subtracting them from the company's total amount of revenue.

Is an indicator of a company's financial performance and can be used to analyze and compare profitability between hotels / companies / industries because it eliminates the effects of financing and accounting decisions.

How do you calculate EBITDA?

EBITDA Formula: Revenue - Expenses*
* Expenses in this case are excluding interest, taxes, depreciation and amortization.

See Also:


GOP