EBITDA definition: Copy, customize, and use instantly
Introduction
The term "EBITDA" refers to "Earnings Before Interest, Taxes, Depreciation, and Amortization." It is a financial metric used to evaluate a company's operating performance by focusing on profitability from core operations, excluding external and non-operational factors.
Below are various examples of how "EBITDA" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "EBITDA" as a profitability measure
This definition ties "EBITDA" to its use in assessing a company's operating profitability.
"EBITDA" means the net income of a company before deducting interest, taxes, depreciation, and amortization, calculated in accordance with generally accepted accounting principles (GAAP).
Definition of "EBITDA" as a basis for financial covenants
This definition connects "EBITDA" to its use in financial agreements for covenant compliance.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, as defined in this agreement, which serves as the basis for calculating financial ratios and determining compliance with covenants.
Definition of "EBITDA" as an adjusted metric
This definition links "EBITDA" to its adjusted version for specific exclusions or inclusions.
"EBITDA" means the net earnings of a company before interest, taxes, depreciation, and amortization, adjusted to exclude one-time, extraordinary, or non-recurring items as specified in this agreement.
Definition of "EBITDA" as a valuation tool
This definition applies "EBITDA" to its use as a key metric in business valuation.
"EBITDA" refers to a company’s earnings before interest, taxes, depreciation, and amortization, used as a standard metric for comparing profitability and determining the enterprise value in mergers, acquisitions, or other transactions.
Definition of "EBITDA" as operating cash flow proxy
This definition ties "EBITDA" to its use as a proxy for operating cash flow in financial analysis.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, used as an approximation of operating cash flow by excluding non-cash and financing expenses.
Definition of "EBITDA" as a performance benchmark
This definition connects "EBITDA" to its use in benchmarking performance across companies or industries.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, utilized as a standardized metric to compare operational efficiency and profitability across similar businesses or sectors.
Definition of "EBITDA" as a debt capacity indicator
This definition links "EBITDA" to its use in assessing a company's ability to service debt.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, serving as a measure of a company’s capacity to generate sufficient income for debt repayment and financial obligations.
Definition of "EBITDA" as adjusted for pro forma items
This definition applies "EBITDA" to its adjusted form, including pro forma adjustments for forecasting purposes.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, adjusted for pro forma items, such as expected cost savings or synergies from acquisitions, as outlined in this agreement.
Definition of "EBITDA" as defined by contractual terms
This definition ties "EBITDA" to a specific calculation agreed upon by the contracting parties.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, calculated in accordance with the definitions and exclusions specified in this agreement, which may include or exclude certain items as agreed by the parties.
Definition of "EBITDA" as normalized earnings
This definition connects "EBITDA" to its use in reflecting normalized operating performance.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, adjusted to exclude seasonal variations, unusual events, or non-operational items, providing a normalized view of a company’s financial performance.
Definition of "EBITDA" as pre-tax operating earnings
This definition links "EBITDA" to its use as a measure of operating earnings before tax effects.
"EBITDA" means pre-tax operating earnings before the deduction of interest expenses, depreciation, and amortization, focusing on profitability from a company’s core business activities.
Definition of "EBITDA" as a growth trend indicator
This definition applies "EBITDA" to its use in tracking growth trends over time.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, analyzed over consecutive periods to assess growth trends, operational stability, and the impact of strategic initiatives.
Definition of "EBITDA" as excluding specific costs
This definition ties "EBITDA" to a calculation that excludes certain pre-agreed costs or charges.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, excluding specific costs such as restructuring charges, litigation settlements, or other extraordinary expenses, as outlined in the agreement.
Definition of "EBITDA" as net profitability base
This definition connects "EBITDA" to its use as a base for calculating profitability margins.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, used as a foundation for deriving profitability margins, such as EBITDA margin, to evaluate operating efficiency relative to revenue.
Definition of "EBITDA" as a liquidity measure
This definition ties "EBITDA" to its use as a measure of a company’s liquidity and financial flexibility.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, used to evaluate a company’s liquidity by highlighting its ability to generate cash from operations to cover expenses and investments.
Definition of "EBITDA" as an acquisition metric
This definition connects "EBITDA" to its use in evaluating acquisition targets and pricing.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, serving as a critical metric in determining the valuation and pricing of potential acquisition targets in mergers and acquisitions.
Definition of "EBITDA" as a cash-generation indicator
This definition links "EBITDA" to its role in indicating a company’s ability to generate cash for reinvestment.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, indicating the cash-generating potential of a company’s core operations for reinvestment or shareholder returns.
Definition of "EBITDA" as a financial health metric
This definition applies "EBITDA" to its use in assessing a company’s overall financial health and stability.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, used as a measure of financial health to determine operational efficiency and the ability to meet short-term and long-term obligations.
Definition of "EBITDA" as adjusted for recurring items
This definition ties "EBITDA" to its calculation after including or excluding recurring items.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, adjusted for recurring expenses or revenues, such as annual maintenance contracts or subscription-based income, to provide a consistent financial view.
Definition of "EBITDA" as a baseline for future performance
This definition connects "EBITDA" to its role in setting benchmarks for future operational performance.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, used as a baseline to project and evaluate a company’s future operational performance and growth potential.
Definition of "EBITDA" as sector-specific adjusted earnings
This definition links "EBITDA" to adjustments tailored for specific industry metrics.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, adjusted to reflect sector-specific financial considerations, such as regulatory costs or industry-standard exclusions.
Definition of "EBITDA" as pre-restructuring earnings
This definition applies "EBITDA" to earnings calculations prior to major restructuring efforts.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, calculated before the impact of restructuring activities, providing a view of pre-restructuring operational performance.
Definition of "EBITDA" as non-GAAP financial metric
This definition ties "EBITDA" to its status as a non-GAAP financial measure for specific reporting purposes.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, used as a non-GAAP financial metric to supplement traditional financial reporting and provide operational insights beyond standard accounting measures.
Definition of "EBITDA" as a margin optimization tool
This definition connects "EBITDA" to its use in evaluating and optimizing profit margins.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, analyzed to identify opportunities for margin optimization through cost control and operational efficiencies.
Definition of "EBITDA" as pre-interest profitability
This definition ties "EBITDA" to its use in measuring profitability before the impact of financing costs.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, focusing on operational profitability by excluding financing-related expenses.
Definition of "EBITDA" as comparable profitability metric
This definition connects "EBITDA" to its role in standardizing profitability comparisons between companies.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, serving as a standardized metric to compare operational performance across companies with differing capital structures.
Definition of "EBITDA" as core earnings focus
This definition links "EBITDA" to its emphasis on core business earnings, excluding external influences.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, highlighting the income generated exclusively from core business operations, unaffected by external financial or accounting factors.
Definition of "EBITDA" as a profitability buffer
This definition applies "EBITDA" to its use in assessing an organization’s buffer against operational downturns.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, serving as an indicator of a company’s ability to withstand short-term operational challenges or declines in revenue.
Definition of "EBITDA" as post-adjustment earnings
This definition ties "EBITDA" to earnings calculated after agreed-upon adjustments.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, adjusted to account for pre-agreed items, such as extraordinary gains, restructuring costs, or non-operational income.
Definition of "EBITDA" as leverage assessment tool
This definition connects "EBITDA" to its use in analyzing a company’s financial leverage.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, utilized in assessing leverage by calculating ratios such as debt-to-EBITDA to evaluate a company’s debt capacity.
Definition of "EBITDA" as cash-neutral profitability
This definition links "EBITDA" to its reflection of profitability, excluding non-cash items.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, representing cash-neutral profitability by excluding non-cash accounting adjustments like depreciation and amortization.
Definition of "EBITDA" as pre-financing and tax measure
This definition applies "EBITDA" to its role in measuring earnings before financing and tax-related impacts.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, focusing on pre-financing and pre-tax operational performance to evaluate underlying business profitability.
Definition of "EBITDA" as a base for enterprise value
This definition ties "EBITDA" to its role in determining enterprise value for transactions or valuation.
"EBITDA" means earnings before interest, taxes, depreciation, and amortization, used as a foundational metric for calculating enterprise value in business valuations or investment analysis.
Definition of "EBITDA" as efficiency evaluation metric
This definition connects "EBITDA" to its use in evaluating the efficiency of a company’s operational management.
"EBITDA" refers to earnings before interest, taxes, depreciation, and amortization, serving as a metric to assess the efficiency of resource allocation and operational management within a company.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.