EBITDA: Difference between revisions
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== What is EBITDA == | == What is EBITDA == | ||
EBITDA, is an abbreviation of Earnings Before Interest, Taxes, Depreciation, and Amortization. It is measure of a company's overall financial performance, just like net income. EBITDA is a measure of profitability. It can, however, can be misleading because it strips out the cost of capital investments like property and equipment. It also excludes expenses associated with debt by adding back interest expense and taxes to earnings. | EBITDA, is an abbreviation of Earnings Before Interest, Taxes, Depreciation, and [[Amortization]]. It is measure of a company's overall financial performance, just like net income. EBITDA is a measure of profitability. It can, however, can be misleading because it strips out the cost of capital investments like property and equipment. It also excludes expenses associated with debt by adding back interest expense and taxes to earnings. | ||
It is often used to have a benchmark, a KPI and an additional measure of your hotel's performance, since it is able to show earnings before the influence of accounting and financial deductions.<br> | It is often used to have a benchmark, a KPI and an additional measure of your hotel's performance, since it is able to show earnings before the influence of accounting and financial deductions.<br> | ||
More in depth information on this in | More in depth information on this in | ||
Revision as of 10:46, 2 July 2023
What is EBITDA
EBITDA, is an abbreviation of Earnings Before Interest, Taxes, Depreciation, and Amortization. It is measure of a company's overall financial performance, just like net income. EBITDA is a measure of profitability. It can, however, can be misleading because it strips out the cost of capital investments like property and equipment. It also excludes expenses associated with debt by adding back interest expense and taxes to earnings.
It is often used to have a benchmark, a KPI and an additional measure of your hotel's performance, since it is able to show earnings before the influence of accounting and financial deductions.
More in depth information on this in
Your hotel
There is not much administration done this way, by the hotel so far. In fact, the operating review is the only public financial statement we have. Also on the liquidity the information lacks at the moment. There is also no amortization in the Game, only interest costs.
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