EBITA (Earnings Before Interest, Taxes, and Amortization)

An accounting measure that is a snapshot of a company’s financial standing. EBITA is the company’s financial picture with regard to earnings. However, what is missing from the concept of earnings, and the EBITA snapshot, is the cost and depletion of “free” natural resources that are part of production processes and consumption behaviors. If these were included to balance sheet equations, earnings snapshots like EBITA would look very different, as would the market prices of goods and services to consumers.

  • Judy Davis

    Why is depletion left out of EDITA?

  • Sam Cai