EBIT vs EBITDA: What You Must Know!

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  • เผยแพร่เมื่อ 21 ก.ค. 2024
  • 💥Profitability Ratios Cheat Sheet → accountingstuff.com/shop
    The fourth instalment of our Financial Ratios series. In this video you'll learn what 'EBIT' and 'EBITDA' both mean, how to calculate them (with examples) and why they're important.
    ▪ EBIT stands for Earnings Before Interest and Taxes
    ▪ EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation
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    ⏱️TIMESTAMPS
    00:00 - Intro
    00:28 - What do EBIT and EBITDA both mean?
    00:56 - Where can you find EBIT and EBITDA?
    01:21 - How can you calculate EBIT?
    02:22 - How can you calculate EBITDA?
    03:30 - Example
    03:47 - Example: How to calculate EBIT
    04:45 - Example: How to calculate EBITDA
    07:08 - Why are EBIT and EBITDA important?
    🔎FAQ
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    #accounting #accountingstuff #financialratios

ความคิดเห็น • 133

  • @TheGippy30
    @TheGippy30 2 ปีที่แล้ว +54

    James I’m so glad you haven’t given up, you’ve great great style of delivery and passion, keep up the great work you’re the best

  • @nthwndroregano6604
    @nthwndroregano6604 2 ปีที่แล้ว +22

    Best accounting teacher on TH-cam, keep making videos please! 😁

  • @lambsauce_apex7118
    @lambsauce_apex7118 2 ปีที่แล้ว +17

    James you carried my accounting exam with your amazing videos :) amazing work and crazy how you can teach me accounting ten times better in three days compared to my professors in 4 months

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +4

      Hope your exams went well!!

    • @lambsauce_apex7118
      @lambsauce_apex7118 2 ปีที่แล้ว

      @@AccountingStuff i got a 2.0 what for me at least is a very good grade in accounting so thank you 🤗

  • @gabrielsanchez3683
    @gabrielsanchez3683 2 ปีที่แล้ว +3

    You have a way of explaining things so clearly. You have a gift man! keep it up!

  • @azkavan1
    @azkavan1 2 ปีที่แล้ว +4

    James, it’s funny you uploaded a video today, I was trying to contact you to thank you for everything you’ve done to help us learn accounting. I recently started a masters in accounting in nyc and I’ve been going through your videos and I also bought all your cheat sheet. Please keep on going we all love the way you just make accounting a joy to learn. Thank You 🙏🏼

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +2

      Cheers Anaf, best of luck in your masters!! I hope you smash it :)

  • @pacificreef6391
    @pacificreef6391 ปีที่แล้ว

    Thank you James, I watched this lecture twice for my CPA preparation. Shout out to you.

  • @jamongjuice
    @jamongjuice 2 ปีที่แล้ว +1

    Omg!! I have watched every single one of your videos! Finally a new one!!! Thanks bunches!

  • @jordynelie245
    @jordynelie245 2 ปีที่แล้ว +1

    I clicked on this video because I subscribe to the channel and was curious about the content of this one.
    Then literally the next day we start talking about this in both my finance and acct classes! So glad I looked!

  • @aceshylus_i722
    @aceshylus_i722 2 ปีที่แล้ว +1

    I'm really grateful that your channel exists!

  • @soapshowdown4721
    @soapshowdown4721 2 ปีที่แล้ว +2

    Hey man, great vid! I appreciate your summaries and explanations. (I also bought you cheat sheets on most accounting concepts). My curiosity is unsatisfiable so when you say that EBIT and operating profit are the same, USUALLY, its drives me crazy to not hear about the exceptions. to google I go. Great to see youre back to making new content!

  • @niteshsharma7396
    @niteshsharma7396 2 ปีที่แล้ว +1

    Thank you James, and good to see you back. I am also in Sydney, lets plan to catchup. Again great video and you have such great knowledge of finance. :)

  • @AmokZuta
    @AmokZuta 2 ปีที่แล้ว +2

    Happy to see you again ❤️

  • @surendarsivaprakasam4035
    @surendarsivaprakasam4035 2 ปีที่แล้ว +6

    Absolutely useful!

  • @mr.latebloomer
    @mr.latebloomer 2 ปีที่แล้ว +3

    following you since college. ❤️

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +1

      An OG! Hope the channel has been helpful for you

  • @nhloniphogumede
    @nhloniphogumede 2 ปีที่แล้ว +2

    We love you James !! keep up the good work ...
    ~ from South Africa.

  • @KimTran-uv1ib
    @KimTran-uv1ib 2 ปีที่แล้ว +1

    Hi James,
    Welcome to Sydney!
    Glad to see your videos

  • @elvira75295
    @elvira75295 2 ปีที่แล้ว +3

    I'm glad you're back 😊

  • @antoniovargas225
    @antoniovargas225 8 หลายเดือนก่อน

    great video james !!!

  • @mohamedeassa
    @mohamedeassa 2 ปีที่แล้ว +3

    Return of the king

  • @graceyim2941
    @graceyim2941 2 ปีที่แล้ว

    Good to see you again, James. Take care in a new country. All the very very best in whatever goal you set for yourself. 🐠🦉🐨

  • @Nickelectric
    @Nickelectric 2 ปีที่แล้ว

    James your explanations are always great

  • @vivek.singhg
    @vivek.singhg 2 ปีที่แล้ว +1

    Finally you are back

  • @enigmagrl-gm7gm
    @enigmagrl-gm7gm ปีที่แล้ว

    Hi your videos are really helping through a very intense accounting part of my course. Any chance you could do one on bad debts? I can’t seem to find one on your list.

  • @Wale_mo
    @Wale_mo 2 ปีที่แล้ว

    Welcome back James, pls continue the good work. I like you♥️

  • @josephchiyokoma5748
    @josephchiyokoma5748 2 ปีที่แล้ว +1

    Something new to learn!!

  • @Khanbaba-kt8gz
    @Khanbaba-kt8gz 2 ปีที่แล้ว

    The best accounting channel...!

  • @deebaji
    @deebaji 2 ปีที่แล้ว

    Very Informative video n appreciate the way of teaching..

  • @chibuezedaike9331
    @chibuezedaike9331 2 ปีที่แล้ว +1

    James is back, nice one

  • @monah2030
    @monah2030 2 ปีที่แล้ว +3

    Hi James
    I just start online accounting and book keeping course. Totally new to me . What’s the best way to do my course. Watch your videos and I’ve learnt a lot . Welcome to Sydney 😀

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +1

      Good on you! I'd spend a decent amount of time on the basics because there are a few principles that underpin the whole of Accounting. Once you fully understand how they work then everything becomes much easier.

  • @samirrashid1949
    @samirrashid1949 2 ปีที่แล้ว +1

    This was my recommendation!

  • @MrDCD007
    @MrDCD007 2 ปีที่แล้ว +1

    Hi James happy to see you again all the best

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +2

      Cheers Derick, hope all's well with you!

    • @MrDCD007
      @MrDCD007 2 ปีที่แล้ว +1

      @@AccountingStuff hi James going very well completing 5 years tomorrow

  • @monah2030
    @monah2030 2 ปีที่แล้ว +1

    Hi James
    Just start online accounting and book keeping course. Completely new to me . Watch your videos and I’ve learnt a lot . What do you recommend? Welcome to Sydney 😀

  • @gibsonchari6393
    @gibsonchari6393 ปีที่แล้ว +1

    YOU ARE VERY GOOD

  • @josephchiyokoma5748
    @josephchiyokoma5748 2 ปีที่แล้ว +1

    You are the best!! ♥️ Am Jay From Southern Africa, Zambia 🇿🇲

  • @CypriotJumanji
    @CypriotJumanji 2 ปีที่แล้ว

    have you got any videos on the journals for hire purchases?

  • @youtuber.9624
    @youtuber.9624 2 ปีที่แล้ว +1

    Hi James,
    Do you have a video that explains the accounting standards (GAAP & IFRS)?
    If not, can you make one, please?
    Thank you.

  • @timtio3373
    @timtio3373 2 ปีที่แล้ว

    James are there any books one can access to understand accounting in real-world settings?

  • @prakashjoshi4933
    @prakashjoshi4933 2 ปีที่แล้ว +3

    Hi James, thanks for this, could you please make a Video on difference in CPA and CA job difference.

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +1

      Thanks for your request!

    • @dontlookatmyusername
      @dontlookatmyusername 2 ปีที่แล้ว

      th-cam.com/video/u_k-Sq5BwXE/w-d-xo.html
      Try this, Amanda was a teacher of mine and is epic. James welcome back to Sydney hope you're in Manly not Bondi.

  • @MrIsla011
    @MrIsla011 2 ปีที่แล้ว

    Amazing Thanks so much :)

  • @bowen.bo_en
    @bowen.bo_en 10 หลายเดือนก่อน

    Clear explanations for non-finance major students

    • @AccountingStuff
      @AccountingStuff  10 หลายเดือนก่อน

      Glad you're finding these useful

  • @tracyliu2497
    @tracyliu2497 2 ปีที่แล้ว +1

    Hi James, can you please talk about the DTL and DTA in your next video? Thanks!

  • @Mike-lr1xh
    @Mike-lr1xh 2 ปีที่แล้ว +1

    you are amazing. please can you do derecognition of assets (PPE)

  • @vasimrajam
    @vasimrajam 6 หลายเดือนก่อน

    James,well done & keep move on.

  • @samburdge9948
    @samburdge9948 2 ปีที่แล้ว +1

    Appreciate your work…..you ever think about starting a managerial accounting playlist or quick books or excel, oracle et cetera or other accounting, economics, actuarial science, investment or finance…..god bless…..r ye Scottish

  • @FitRadio
    @FitRadio 2 ปีที่แล้ว

    Welcome back! i believe a DTA and DTL video would be great! What do you think?

  • @faizanshabir8193
    @faizanshabir8193 2 ปีที่แล้ว +1

    Please make videos on International Accounting Standards, Financial Ratios & Provision for bad debts.

    • @Wale_mo
      @Wale_mo 2 ปีที่แล้ว

      This will be great, James pls do video on standard IAS, IFRS and others. Thanks

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว

      Thanks for your request!

  • @toluogu6120
    @toluogu6120 2 ปีที่แล้ว

    Great Video, Could you please do one on VAT returns.

  • @meshaklyn7
    @meshaklyn7 2 ปีที่แล้ว +3

    Hi James 👋, thank you so much 😊. Can you please do a video on Petty Cash Book😭😭one day.

  • @claudiaquirogablanco3224
    @claudiaquirogablanco3224 2 ปีที่แล้ว +1

    Hello James a silly request can you explain MARK UP AND MARGINS please please please por favorcito

  • @bharathidilipan.t9486
    @bharathidilipan.t9486 2 ปีที่แล้ว

    Can you explain the concept working capital, I am very much confused how the negative working capital is good in certain cases? If the current ratio is less than 1 how could the business pay its short term debts

  • @nadirbaig156
    @nadirbaig156 ปีที่แล้ว

    How make the trial balance income statement and balance sheet in construction company with example.

  • @Ksharma112
    @Ksharma112 2 ปีที่แล้ว +1

    Hlo James! Please make a video on fund flow statement please...

  • @scottmponthie3537
    @scottmponthie3537 2 ปีที่แล้ว

    Can someone explain to be the difference between an account and a journal?

  • @tawananyashadhakwa7874
    @tawananyashadhakwa7874 2 ปีที่แล้ว +1

    Please do a video on Control accounts

  • @MandeepKaur-is1nb
    @MandeepKaur-is1nb 2 ปีที่แล้ว +1

    How about EBITD earnings before interest and tax and dividend???

  • @eynerquispesanchez7742
    @eynerquispesanchez7742 2 ปีที่แล้ว +1

    interesting

  • @maestrovoltar707
    @maestrovoltar707 2 ปีที่แล้ว

    Hi please can you make a video about irrecoverable and doubtful debts?

  • @budakamerika
    @budakamerika 8 หลายเดือนก่อน

    you always so funny!!!!!! XD i enjoy your little jokes in all videos i laughed so hard seeing them lollll. and thanks for the great explanation

  • @aminedarjaj9259
    @aminedarjaj9259 2 ปีที่แล้ว

    can you plz make a video about bad dept/allowance for doubtful accounts??

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +1

      Thanks for your request!

    • @aminedarjaj9259
      @aminedarjaj9259 2 ปีที่แล้ว

      @@AccountingStuff and thank you for everything, keep up 🔥

  • @pubuduwijesinghe6671
    @pubuduwijesinghe6671 2 ปีที่แล้ว

    How to calculate Free cash flow?

  • @rose-pq8nh
    @rose-pq8nh 2 ปีที่แล้ว +1

    Can make vedio on how to handle small business

  • @charismabatharadewa5818
    @charismabatharadewa5818 ปีที่แล้ว

    is EBIT equals to Profit before tax?

  • @AMAL_AMPZ
    @AMAL_AMPZ 2 ปีที่แล้ว +1

    🔥🔥🔥

  • @user-xedwsg
    @user-xedwsg ปีที่แล้ว

    EBIT vs operating income?

  • @ellenoir5678
    @ellenoir5678 2 ปีที่แล้ว +1

    So EBITDA is the value of the company correct?

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว +1

      Not exactly, this could be a topic for a future vid :)

    • @ellenoir5678
      @ellenoir5678 2 ปีที่แล้ว

      Notification stays on my brother lol

  • @ihateladygagaposers9
    @ihateladygagaposers9 2 ปีที่แล้ว

    Bought your cheat sheets a couple weeks ago. And cant figure them out to be helpful for me. I emailed you and havent heard back

    • @AccountingStuff
      @AccountingStuff  2 ปีที่แล้ว

      Thanks for supporting the channel! The cheat sheets contain all the key information from my videos. You can use them as reference guides to help jog your memory on each topic.

    • @ihateladygagaposers9
      @ihateladygagaposers9 2 ปีที่แล้ว

      Guess i thought they would be different

  • @reanwithkimleng
    @reanwithkimleng 2 หลายเดือนก่อน

    ❤❤❤❤

  • @Native_love
    @Native_love ปีที่แล้ว

    Charlie Munger, "You can understand EBITDA statements a lot easier if you substitute in the word B###$#!+." Good to know but not in an investment.

  • @fabianrichburgh6517
    @fabianrichburgh6517 ปีที่แล้ว +1

    why couldn't my teacher just say this

    • @madelineperry8112
      @madelineperry8112 2 หลายเดือนก่อน

      Studying for the CIA part 3 with no accounting background and I said the same thing! The gliem prep book is not direct at all. This guy is a life saver!

  • @hudhaifa7580
    @hudhaifa7580 2 ปีที่แล้ว +1

    Hey James i sent you dm on Instagram and hope u take the time to respond