What does it mean to have a high EBITDA level

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If your business, venture or company turns out to have a high level of EBITDA, it means that it has a high level of potential to be able to generate future benefits with its respective activities. That is to say, profitability levels will be optimal a priori , if we combine it with excellent management and administration of resources and assets. However, this potential is not synonymous with success, since it does not take, as you know, other important aspects of business economics. Now, it does not mean that having a low EBITDA level means that our project has no chance of growing. What is more difficult?


Well, it is, however, it all depends on responsible and Belarus WhatsApp Number coherent decisions, good resource management and taking advantage of market needs. What is EBIT? As you can see, EBIT shares the same first acronym as EBITDA, and in fact, it means exactly the same thing with the difference that in Ebit, the result of a much more realistic calculation. That is, EBIT means earnings before interest and taxes , and what is sought is to also measure the operating benefits of a company at the time of an accounting year. And thanks to the fact that its calculation does include depreciation and amortization , it makes it a much more reliable or realistic calculation or meter.





It could be said then that EBIT is a calculation improvement since it takes into consideration these last two aspects that EBITDA ignores, making it a much more responsible and precise method. The only thing it leaves out of its calculation is the interest and taxes that the company in question is owing. What this seeks is to better measure the good performance and health of a company. TEST How much do you know about business? Tools, concepts, business methodologies...