What is EBITDA Formula?
EBITDA = Net Income + Taxes + Interest Expense + Depreciation & Amortization
EBITDA = Operating Income + Depreciation & Amortization
What is the use of EBITDA?
✓ EBITDA can be used to compare companies against each other and industry averages.
✓ EBITDA is a good measure of core profit trends because it eliminates some extraneous factors and provides a more accurate comparison between companies.
✓ EBITDA can be used as a shortcut to estimate the cash flow available to pay the debt of long-term assets.
Top 3 Pharamaceutical Companies with HIGH EBITDA Margin in Q1 FY22:
Source: Investopedia & Stockedge
Disclaimer: This is only for educational purposes and before taking buy action consult your financial advisor.
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