# What is the formula to calculate EBITDA?

## What is the formula to calculate EBITDA?

Here is the formula for calculating EBITDA:

1. EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.
2. EBITDA = Operating Profit + Depreciation + Amortization.
3. Company ABC: Company XYZ:
4. EBITDA = Net Income + Tax Expense + Interest Expense + Depreciation & Amortization Expense.

### Does EBITDA include SG&A?

EBITDA is an abbreviation for “earnings before interest, taxes, depreciation, and amortization.” Thus, it is calculated adding back these line items to net income, and so does include operating expenses such as the cost of goods sold (COGS) and selling, general, and administrative (SG&A) expenses.

#### Where is EBITDA in financial statements?

The first step to calculate EBITDA from the income statement is to pull the operating profit or Earnings before Interest and Tax (EBIT). This can be found within the income statement after all Selling, General, and Administrative (SG&A) expenses as well as depreciation and amortization.

How do you calculate EBITDA in Excel?

How to Calculate EBITDA Margin in Excel

1. Take EBIT from the income statement, which is a GAAP line item.
2. Find depreciation and amortization on the statement of operating cash flows.
3. Add them together to arrive at EBITDA.
4. Calculate this period’s EBITDA divided by this period’s revenue to arrive at the EBITDA margin.

How is the formula for EBITDA calculated in Excel?

Finally, the formula for EBITDA can be derived by adding interest (step 2), tax (step 3) and depreciation & amortization (step 4) to the net income (step 1) as shown below.

## Where to find EBITDA in the income statement?

The first step in the calculation of EBITDA from the income statement is to arrive at the operating profit or Earnings before Interest and Tax (EBIT). The data can be found in the income statement after the depreciation & amortization expenses and selling, general & administrative (SG&A) expenses.

### How is operating profit calculated on a P & L?

Operating profit shows revenue less cost of goods sold and operating expenses. Unlike net income, or the “bottom line” of the P&L statement, it does not take into account tax or interest expenses. It does, however, include depreciation and amortization. So we’ll need to add those back in to calculate EBITDA.

#### What is the EBITDA formula for Bombardier Inc?

EBITDA = Net Income + Financing Expense + Tax + Depreciation & Amortization Therefore, Bombardier Inc.’s made EBITDA of \$1,388 million during the year. Let us take another real-life example of Apple Inc. Based on the latest annual report for the year ending on September 29, 2018, the information is available.