What is EBITDA in Finance?
Quiz by Paolo Fanti
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8 questions
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- Q1Is EBITDA a GAAP-approved metric?YesSometimesIt depends on the companyNo30s
- Q2What is a good EBITDA margin?It varies by industry50%100%15%30s
- Q3What is the difference between EBITDA and EBIT?EBIT includes taxes, while EBITDA does notThere is no difference between EBITDA and EBITEBIT includes interest expense, while EBITDA does notEBIT includes depreciation and amortization, while EBITDA does not30s
- Q4What is the formula for EBITDA?Revenue - ExpensesOperating Income + Depreciation + AmortizationGross Profit - Cost of Goods SoldNet Income - Taxes30s
- Q5What is the purpose of using EBITDA?To measure the solvency of a companyTo measure the liquidity of a companyTo measure the operating performance of a companyTo measure the profitability of a company30s
- Q6What is EBITDA margin?EBITDA divided by Net IncomeEBITDA divided by RevenueEBITDA divided by Total AssetsEBITDA divided by Equity30s
- Q7Which one is not included in EBITDA?Depreciation ExpenseIncome Tax ExpenseAmortization ExpenseInterest Expense30s
- Q8What does EBITDA stand for?Earnings Before Interest, Tax, Depreciation, and AccountsEarnings Before Income Taxes, Depreciation, and AccountingEarnings Before Income Tax Depreciation and AmortizationEarnings Before Interest, Taxes, Depreciation, and Amortization30s