The computation of the EBITDA involves beginning with the net income and then subtracting interest, taxes, depreciation, and amortization. The formula is: EBITDA= Net Income + Interest + Taxes + Depreciation + Amortization. This computing eliminates the impacts of financing structure, tax rates, and non-cash accounting charges. It makes investors know the amount of cash a firm makes without incurring any increase or expenses in its operations. EBITDA is favored by many analysts due to its emphasis on operational performance that does not have any distortion. It is frequently applied in valuation, in particular, to compare profitability among companies or industries. EBITDA provides a better understanding of the financial health since it concentrates on operating cash flow. Visit us: https://accountinglads.com/ebita/