Glossary
EBITDA
EBITDA is the profit of your operations after running costs but before taking off interest, tax, depreciation and amortisation.
What it means for a shop owner
It shows operating performance apart from how you are financed and how old your equipment is, so it helps compare two shops. It is not cash in your pocket, since interest and tax still have to be paid. Use it beside net profit, not instead of it.
A worked example
Before interest, tax and depreciation your profit is 1000. Interest is 100, depreciation 150 and tax 50, so net profit is 700.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes