Financial indicator EBITDA and its value in the process of financial sanitation of enterprises

Abstract

In the system of financial indicators, in general, and financial sanitation, in particular, the EBITDA formula is of particular importance. The expression reflects the absolute result of the company. However, unlike gross profit or net financial result, this indicator brings specific shades to the analysis. First of all, just the difference between the gross income of the enterprise and its costs will not show the analyst the features associated with the tax regime, corporate accounting policies and the procedure for reimbursing fixed assets. For a more accurate assessment of the financial result, EBITDA was developed, the formula and calculation procedure of which directly comes from the financial statements of the entity.