Define: EBTDA

How is EBTDA defined in a legal contract?

• EBTDA means the net income for a specific period, inclusive of income tax expense, depreciation and amortization expense, losses on sales of fixed assets, and other non-cash charges. It also deducts gains on sales of fixed assets, extraordinary gains, and non-operating income for that period. All these factors determined by commonly accepted accounting principles (GAAP). Seen in 8 SEC filings.
• EBTDA means the ordinary income plus depreciation and amortization minus interest expense. Seen in 4 SEC filings.
• EBTDA means the sum of net income plus the amounts deducted from Net Income as expenses for taxes, depreciation and amortization. Seen in 2 SEC filings.
• EBTDA means earnings before taxes, depreciation and amortization, as calculated by an entity in consultation with [organization] and in accordance with the accounting principles used by the entity in its audited financial statements for a fiscal year. EBTDA is calculated after deducting interest expense. Seen in 2 SEC filings.
• EBTDA means earnings before taxes, depreciation and amortization. Seen in 2 SEC filings.
• EBTDA means earnings before income taxes, depreciation, and amortization, calculated consistent with the policies used to prepare the consolidated financial statements of the Corporation for the relevant period. Seen in 1 SEC filing.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of ebtda' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• EBTDA means net income inclusive of tax, depreciation, and amortization, adjusted for sales of assets and non-operating gains.

Relevant Contract Types

• Financial Agreement
• Mergers and Acquisitions Agreement
• Investment Agreement
• Shareholder Agreement

Relevant Circumstances

• When structuring financial agreements and investment propositions.
• In mergers and acquisitions to evaluate the financial health of a company.
• When setting performance metrics in executive compensation packages.

Relevant Sectors

• Banking and Finance
• Investment and Ventures
• Consulting and Advisory Services

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Genie Definition 2

• EBTDA means ordinary income plus depreciation and minus interest expense.

Relevant Contract Types

• Loan Agreement
• Leasing Agreement

Relevant Circumstances

• In loan agreements where the borrower's ability to service the loan is evaluated.
• In leasing agreements where the tenant's ability to meet leasing obligations is assessed.

Relevant Sectors

• Real Estate
• Banking and Finance

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