Quick question? What is the diffecrence between EBITDA and gross income? Thanks
Gross income = Sales - COGS-direct production exp. EBITDA = Gross income - operating expenses (selling,admin,distribution exp).
operating expense includes depr expense as well. EBIT = Gross income - operating expense… EBIT = EBITDA - Depr expense - Amortization…
ya right sumit. Operating exp includes Dep and Amort.Thnx for correction
Surely earnings before interest,tax,depreciation and admin, would equal to gross profit?
there could be other charges as well, like impairment… Not sure about valuation allowance for def tax asset
simple formula for EBITDA = Sales - cash COGS - cash SG&A
EBIT = sales - OP ex EBITDA, you just add back the D/A to EBIT. D/A is broken out in the CFO section of stmtm of cash flows, it often isnt listed on a simple income stmt…