EBITDA

EBITDA is commonly used as a measure of earnings before interest, tax, depreciation and amortisation. Its calculation and any additional adjustments vary, so identify the starting subtotal, included income and expenses, and reconciliation before comparing entities or periods. It is not cash flow: working capital, capital expenditure, interest and tax can be significant. IFRS 18 does not define EBITDA; a separately specified operating-profit subtotal before depreciation, amortisation and specified impairments is not automatically the same measure. Depending on its calculation and use, an adjusted subtotal may be a management-defined performance measure under the applicable IFRS 18 criteria.