earnings before interest, taxes and depreciation (EBITD)


A tax accounting term to measure a specific aspect of taxable income and separate it from other factors. Earnings before interest most commonly refers to wages or earned income from salary. Interest is income earned from placing money in an interest bearing savings account in a bank. Taxes already paid to another agency are not included in EBITD calculation. Depreciation is factored in on homes or cars or other higher-priced investments.
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Earnings before Interest, Tax, Amortization and Exceptional Items (EBITAE) Earnings Before Interest, Taxes, Depreciation, Amortization and Rent