Start by obtaining the net income from a company’s statement and add back interest, taxes, depreciation and amortization to get EBITDA. That is:
EBITDA is calculated by adding Net Income, Interest, Taxes, Depreciation and Amortisation together.
It demonstrates a company’s profitability before any experiment with financing or accounting. Both investors and analysts commonly rely on EBITDA to analyze how operations are doing. With EBITDA, one can compare capital-intensive companies by looking at their core business performance, apart from the effect of decisions in finance and accounting.
Read more about <a href="https://accountinglads.com/ebita/">how to calculate ebitda</a>