What is the formula of calculating EBITDA through operating income?

[accounting lads]

Operating income (EBITA) can also be used to calculate EBITDA. The formula is:
EBITDA = Operating Income (EBIT) and Depreciation + Amortization.
Interest and taxes have already been factor out of operating income, thus only depreciation and amortization should be included back in the operating income. This method is more easily made when the operating income are well listed in the financial statements. With EBIT, it becomes easier to concentrate on performance first before non-operating. The EBITDA formula which is based on EBITDA is often used by investors with different degrees of debt, or tax regime structure. It gives a more stable image of operating profitability and cash generating opportunities.

[Author]

Posts