What is EBIDTA?

Earnings Before Interest, Taxes, Depreciation and Amortization. This figure measures a company's annual earnings before the subtraction of interest payments, taxes, depreciation, and amortization. EBIDTA demonstrates a company's earnings based solely on their operations. Using this figure can make it easier to compare companies across industries if any one of the companies has significant assets that require large amounts of depreciation or amortization or if they have a large amount of debt which leads to large interest payments.