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Definition of (EBITA) Earning Before Interest, Taxes, and Amortization

Definition: What is (EBITA) Earning Before Interest, Taxes, and Amortization?

EBITA or earnings before interest, taxes, and amortization is the efficiency measurement. It calculates the operational profitability of the company by including the equipment costs and excluding the financing costs.

For the measurement of earning and profitability of any business, investors, accountants and analyst use EBITA. EBITA is the common derivative of EBIT and EBITDA.

To measure the core profitability of the business this measurement is mostly used. Without regard to finance cost and capital expenditure, EBITA measure the operating profitability of the company.

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