What is the meaning / definition of in the hospitality industry?

stands for: Earnings Before Interest, Taxes, Depreciation and Amortization.

This is used to determine how profitable a or business is with regard to its operations (the profit on the products it produces and sells).

is calculated by taking the ’s earnings before interest, tax, amortization and depreciation and subtracting them from the company’s total amount of revenue.

Is an indicator of a ’s financial performance and can be used to analyze and compare profitability between hotels / companies / industries because it eliminates the effects of financing and accounting decisions.

How do you calculate EBITDA?

  •  Formula: Revenue – Expenses*

* Expenses in this case are excluding interest, taxes, depreciation and amortization.

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