Enjoyed this video? Then subscribe to my channel and watch my video explaining why companies believe EBIT - EBITA - EBITDA are meaningful metrics: th-cam.com/video/nImp51zYcy4/w-d-xo.html
Glad you liked it!, Avi! Here's the link to a follow-up video where I have finetuned my story on EBIT-EBITA-EBITDA th-cam.com/video/nImp51zYcy4/w-d-xo.html
Great to hear that, Mohamad! Thank you for watching and commenting. Please subscribe to the channel. I think you will like the related video on EBIT-EBITA-EBITDA as well, it helps to put the terms in perspective: th-cam.com/video/nImp51zYcy4/w-d-xo.html
Thank you! 😊 More background on why companies choose to report on EBIT, EBITA and/or EBITDA in this video: th-cam.com/video/nImp51zYcy4/w-d-xo.html&pp=gAQBiAQB
Thank you very much, Luis! I grouped my videos on EBITDA into a playlist, there might be more useful information for you in there. th-cam.com/video/eH4ex5q_j1w/w-d-xo.html
Thank you! Here's the link to a playlist of videos from my Finance Storyteller channel on related income statement terminology: th-cam.com/video/eH4ex5q_j1w/w-d-xo.html
What's the difference between Interest and Amortization? If, amortization is used in the process of paying off debt through regular principal and interest payments over time. If Amortization is interest payments what is Interest? Both Interest and Amortization are the same?
You are talking about a very different use of the word amortization, in the context of loan repayments. I am using the word amortization in my videos as the accounting process of allocating the cost of intangible assets to current expense in a systematic and rational manner in those periods expected to benefit from the use of the asset. If you search on "loan amortization" or "loan amortization schedule", you will get answers to your questions. Not in my videos.
Hi Asher! It is not excluded. SG&A expense comes "before" EBITDA, while depreciation and amortization expense come "after" EBITDA if you go down the profit and loss statement. SG&A is deducted from Gross Margin.
@@TheFinanceStoryteller Hmm ic, I think i got confused as sales and marketing expense is included in SG&A. But i saw some financial reports that spilt the two up. THANKS FOR YOUR REPLY THOUGH, IT HELPED CLEAR THIS UP! Liked!
Agree! Most companies use SG&A th-cam.com/video/5S9xjBXx5v0/w-d-xo.html as a category, but I have also seen splits with General and Administrative in one line, and Sales and Marketing in the other.
Hello Rhea, I think what you are asking is how to analyze EBITDA. I would suggest to compare the EBITDA of a company year-over-year, or to another company in the same industry. In the MD&A section of the annual report, you may find data that explains increases or decreases in EBITDA: th-cam.com/video/LD6YBBtpEcs/w-d-xo.html
The Finance Storyteller Thank you! Would you please tell me more what am I looking at after the comparison. Am I looking at a trend of a corporate who publishes EBIDA for new financial year after year and the inconsistency in their own forecast? What would be dead giveaway for a bad forecast? Many thanks xx
I personally would look at EBITDA as % of revenue, and see how that develops over time. As a shareholder, I would like to see an improve in that EBITDA% over time (as that would mean that profit grows faster than revenue). Be aware that there might be an effect of "unusual items" (one time expenses or benefits) in certain years that could distort the comparison. There can be internal and external factors that impact EBITDA.
what is 20 times Ebit/da.......... ? 10 times Ebit/da..............I understand Ebit/da and what it means but I don't understand the usage of it when traders use it.
Enjoyed this video? Then subscribe to my channel and watch my video explaining why companies believe EBIT - EBITA - EBITDA are meaningful metrics: th-cam.com/video/nImp51zYcy4/w-d-xo.html
Wow! So simply explained. Thank you so much!
Glad you liked it!, Avi! Here's the link to a follow-up video where I have finetuned my story on EBIT-EBITA-EBITDA th-cam.com/video/nImp51zYcy4/w-d-xo.html
Homelander should’ve watched this video before his board meeting 😂
Wow mind blown to how easy it is to understand now
Thank you, Ed! I have several more examples of EBIT-EBITA-EBITDA in this playlist: th-cam.com/video/eH4ex5q_j1w/w-d-xo.html
short and to the point I loved it
Thanks for watching and commenting!!! I try to make all my videos in that "style". 😎
Easy to understand. Thanks man!
Great to hear that, Mohamad! Thank you for watching and commenting. Please subscribe to the channel. I think you will like the related video on EBIT-EBITA-EBITDA as well, it helps to put the terms in perspective: th-cam.com/video/nImp51zYcy4/w-d-xo.html
Thanks million ❤❤❤
Happy to help. More explanation and examples in these related videos: th-cam.com/video/N6ZgIVAQeXQ/w-d-xo.html&pp=gAQBiAQB
Thank you ❣
Happy to help! Here are some related videos that discuss the definitions and show examples: th-cam.com/video/N6ZgIVAQeXQ/w-d-xo.html&pp=gAQBiAQB
Amazing!
Thank you! 😊 More background on why companies choose to report on EBIT, EBITA and/or EBITDA in this video: th-cam.com/video/nImp51zYcy4/w-d-xo.html&pp=gAQBiAQB
You are a blessing!
Thank you very much, Luis! I grouped my videos on EBITDA into a playlist, there might be more useful information for you in there. th-cam.com/video/eH4ex5q_j1w/w-d-xo.html
As the new CEO of a superhero company this is great!
Thank you! More explanations and examples in this EBITDA playlist: th-cam.com/video/eH4ex5q_j1w/w-d-xo.html&pp=gAQBiAQB
Homelander is that you? Lol
Thanks it makes it way much simplier 🙂
Glad it helped! 🙂
Dear Sir,
Thank You.
You're welcome! :-)
Thank you!
You're welcome!
Thank You
Welcome!
Finally i get it from you vidoe
Welcome!
Thank you 💕
You're welcome! :-)
nice vdo, thank u
You're welcome, Vinod!
Well done.
Thank you! Here's the link to a playlist of videos from my Finance Storyteller channel on related income statement terminology: th-cam.com/video/eH4ex5q_j1w/w-d-xo.html
What's the difference between Interest and Amortization?
If, amortization is used in the process of paying off debt through regular principal and interest payments over time.
If Amortization is interest payments what is Interest?
Both Interest and Amortization are the same?
You are talking about a very different use of the word amortization, in the context of loan repayments. I am using the word amortization in my videos as the accounting process of allocating the cost of intangible assets to current expense in a systematic and rational manner in those periods expected to benefit from the use of the asset. If you search on "loan amortization" or "loan amortization schedule", you will get answers to your questions. Not in my videos.
@@TheFinanceStoryteller I am looking for amortization regarding financial statements. Precisely the income statement.
@@Alfoncos Then take a look at my video on amortization here: th-cam.com/video/ci72a_SzFcQ/w-d-xo.html
Where is that accent from?
The Netherlands. :-)
Nice
Why is sales and marketing expense excluded?
Hi Asher! It is not excluded. SG&A expense comes "before" EBITDA, while depreciation and amortization expense come "after" EBITDA if you go down the profit and loss statement. SG&A is deducted from Gross Margin.
@@TheFinanceStoryteller Hmm ic, I think i got confused as sales and marketing expense is included in SG&A. But i saw some financial reports that spilt the two up. THANKS FOR YOUR REPLY THOUGH, IT HELPED CLEAR THIS UP! Liked!
Agree! Most companies use SG&A th-cam.com/video/5S9xjBXx5v0/w-d-xo.html as a category, but I have also seen splits with General and Administrative in one line, and Sales and Marketing in the other.
Hi, how come you didn't include the 'selling, general & administrative expense' to get your gross margin?
Revenue minus Cost Of Goods Sold is Gross Margin.
Gross Margin minus SG&A and R&D is Operating Margin.
th-cam.com/video/VCMJzG1AaXA/w-d-xo.html
How to critic EBITDA? Where is the downfall? Thank you in advance x
Hello Rhea, I think what you are asking is how to analyze EBITDA. I would suggest to compare the EBITDA of a company year-over-year, or to another company in the same industry. In the MD&A section of the annual report, you may find data that explains increases or decreases in EBITDA: th-cam.com/video/LD6YBBtpEcs/w-d-xo.html
The Finance Storyteller Thank you! Would you please tell me more what am I looking at after the comparison. Am I looking at a trend of a corporate who publishes EBIDA for new financial year after year and the inconsistency in their own forecast? What would be dead giveaway for a bad forecast? Many thanks xx
I personally would look at EBITDA as % of revenue, and see how that develops over time. As a shareholder, I would like to see an improve in that EBITDA% over time (as that would mean that profit grows faster than revenue). Be aware that there might be an effect of "unusual items" (one time expenses or benefits) in certain years that could distort the comparison. There can be internal and external factors that impact EBITDA.
The Finance Storyteller Thank you ever so much! x
what is 20 times Ebit/da.......... ? 10 times Ebit/da..............I understand Ebit/da and what it means but I don't understand the usage of it when traders use it.
Thank you
Welcome! More videos on various aspects of EBIT - EBITA - EBITDA in this playlist: th-cam.com/video/nImp51zYcy4/w-d-xo.html&pp=gAQBiAQB