#104- EBITDA ( Practical Guidance on how to compute)

EBITDA stands for Earning before Interest, Tax, Depreciation and Amortisation.

Here is a step by step guidance on how to compute a Company's EBITDA based on a financial statement:

1. Take the Profit before Tax number (from income statement)
2. Add: Interest (usually, this number can be found in cash flow statement.
3. Add: Depreciation ( most likely: depreciation number can be found in notes to account of Property, Plant & Equipment/ cash flow statement)
4. Add: Amortisation ( most likely: amortisation number can be found in notes to account of Intangible Assets/ cash flow statement)