PBIDTA

PBIDTA:

It is Earning before Interest, Depreciation, Taxation and Amortization. It gives an idea
regarding availability of cash with the unit for payment of debt.
The variables used in calculation of EBIDTA could be different for two similar types of
units because of variance in debts (affecting interest portion), investment in fixed
assets (affecting depreciation) and the level of intangibles (affecting amortization),
resulting change in PBT and accordingly tax expenses.
Formula for PBIDTA: PAT + Interest expenses + Deprecation + Income Tax +
Amortization

Rationale: For comparing the profitability of two units, this is an important and reliable
item. This is useful to compare margin generating capacities between similar type of
units