EBITA; income

EBITA is an acronym that refers to a company’s earnings before the deduction of interest, tax and amortization expenses. See EBITDA. It is a financial indicator used widely as a measure of efficiency and profitability. EBITA margins in developing telecom markets can be as high as 60%, but margins vary greatly across industries and over time.

EBITA can be calculated by taking the Profit Before Taxation (PBT/EBT) figure as shown on the Consolidated Income Statement, and adding back Net Interest and Amortization. Often, Amortization charges are zero and therefore EBIT = EBITA.

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