Income Statement

What is EBITDA?

Operating profit before depreciation and amortisation are deducted, a rough proxy for the cash the operations throw off before investment.

How it is calculated

Operating income plus depreciation and amortisation.

How to read it

Useful for comparing businesses with different asset intensity and for leverage ratios like net debt to EBITDA. It is not cash flow: capital spending and working capital still have to be paid for.

Keep in mind

Companies do not report EBITDA under GAAP, so it is always composed: operating income plus depreciation and amortisation, or, when operating income is missing, net income plus interest, tax and depreciation. It will differ from the adjusted EBITDA management quotes.

Where the numbers come from

Scrutar computes EBITDA from the figures each company reports to the SEC in its annual and quarterly filings, using the XBRL data attached to those filings.

More Income Statement metrics

RevenueTotal sales of goods and services in the period, before any costs are taken out.How to read it →Cost of RevenueWhat it cost to make the products or deliver the services that were sold: materials, factory labor, hosting, delivery.How to read it →Gross ProfitRevenue left after the direct cost of what was sold, before overheads like research, marketing and management.How to read it →R&D ExpensesSpending on research and development of new products and technology.How to read it →Operating IncomeProfit from running the business, after all operating costs but before interest and tax. Often called operating profit or EBIT.How to read it →Net IncomeThe bottom line: profit left for shareholders after every cost, interest and tax.How to read it →EPSNet income spread over the average number of shares, so profit can be compared per share and against the share price.How to read it →Interest ExpenseThe cost of borrowing in the period.How to read it →

See it for a real company

Ten years of EBITDA and every other metric on this page, for every company Scrutar covers, computed from SEC filings.

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