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Dom

Definition; EBITDA goal

What is an 'EBITDA goal'?


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900 helpful answers

Don't sweat the petty things and don't pet the sweaty things.

Earnings Before Interest, Tax, Depreciation and Amortization

Posted 2009-02-20T09:07:37Z
 
4552 helpful answers

Love is the battery of life....

Hi Dom,
That is: Earnings Before Interest, Taxes, Depreciation and Amortization.  That is an approximate measure of a company's operating cash flow based on data from the company's income statement.  Just as a company sets goals for sales or net profit a company can and should set goals for the EBITDA (give a certain figure that the company will aim to reach). 
Best regards,

Posted 2009-02-20T09:55:44Z
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Very many thanks.  Is that the same as Gross Revenue?

 
4552 helpful answers

Love is the battery of life....

Hi Dom,
You are welcome.  No Gross sales is actually the total sales.  EBITDA reffers to earning (that means sales minus the many expenses [labor, material, energy, marketting.... etc]).
Best regards,

Posted 2009-02-20T10:04:07Z
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900 helpful answers

Don't sweat the petty things and don't pet the sweaty things.

Grosss Revenus is the following: Raw" sales income; the amount customers actually pay the company when they make their purchases. When a company sells products, it has to make allowances for some portion of its sales for products expected to be returned, lost in delivery, or otherwise requiring the company to refund the customers' money. The "official" revenue number, known as sales revenue, equals gross revenue minus these allowances. Gross revenue is generally not an interesting number for investors. One case where it is interesting is when you're tracking the progress of a startup company. It's possible that at the very beginning they'll be doing such a tiny amount of business that actual sales will be less than the allowances for refunds, meaning that sales revenue will technically be a negative number. In this case the company will issue news releases about its gross revenue, so investors will at least know that a few customers have been showing up and laying out some cash.

Posted 2009-02-20T13:39:54Z

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