Finance
Calculate EBITDA
=B1+B2+B3+B4How it works in Excel
- B1 is net income.
- B2 is interest.
- B3 is taxes.
- B4 is depreciation and amortization.
- It is a rough view of operating profit before financing and accounting choices.
- It ignores the real cost of replacing equipment.
The idea in general
It adds back costs that vary with how a company is funded and taxed, to make comparison easier.
What I assumed
- The four items are in B1 to B4.
Check the result on your own data before relying on it.