What does EBITA stand for?
What does EBITA mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: EBITA.
What does EBITA mean?
- EBITA is an acronym that refers to a company's earnings before the deduction of interest, tax and amortization expenses. See EBITDA. It is a financial indicator used widely as a measure of efficiency and profitability. EBITA margins in developing telecom markets can be as high as 60%, but margins vary greatly across industries and over time. EBITA margin can be calculated by taking the Profit Before Taxation figure as shown on the Consolidated Income Statement, and adding back Net Interest and Amortization. Often, Amortization charges are zero and therefore EBIT = EBITA. EBITA has more recently been cited by buyside investors as a useful metric to be used as a replacement for, or in conjunction with, EBITDA multiples, as corporations continue to present increasing levels of intangible-based amortization.