Example of EBITDA
Calculate EBITDA from the following items in a company where,
Net Income = ₹20,000,000
Depreciation & Amortization = ₹10,000,000
Interest Expense = ₹5,000,000
Taxes = ₹5,000,000
Solution:
Using the formula
EBITDA = Net Income + Depreciation & Amortization + Interest Expense + Taxes
EBITDA = ₹20,000,000 + ₹10,000,000 + ₹5,000,000 + ₹5,000,000
EBITDA = ₹40,000,000
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