EBITDA example

How to calculate EBITDA? In this short video, we will walk through the EBITDA definition and an example of two ways to calculate EBITDA for Verizon (NYSE: VZ). EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. ⏱️TIMESTAMPS⏱️ 00:00 EBITDA definition 00:51 How to calculate EBITDA 01:11 EBITDA calculation example 01:49 Calculating EBITDA from Operating Income How to calculate EBITDA? Take the income statement of a company, and check first of all whether they have calculated #EBITDA for you in their disclosures. If this is not the case, then check whether the company has split out depreciation and amortization in their income statement. The EBITDA calculation in method 1 is from the top down, start with revenue and make your way down through Gross Margin to EBITDA. The EBITDA calculation in method 2 is slightly shorter, you start with Operating Income or #EBIT and work your way up. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!