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EBIT and EBITDA: What are they, and why are they important?

The Finance Storyteller 508 views

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Comments

Great tutorial! Really helped break down the accounting verbiage, and explained what to look for and why, when assessing a company
Comment from : @buckjohnson6202

I loved the explanation
Comment from : @robertosandoval6335

that 1:53 explanation cleared my head 100
Comment from : @ibrahimalbaz2595

Wonderful video, thank you! I assume this is related just to the USA tax system right?
Comment from : @MaiaDreams

How did you get a picture of me asking the question? 😂
Comment from : @marilynyadira

Thank you ❣
Comment from : @coraliesw3626

They're BS per Warren Buffet 😊
Comment from : @phillyboylaboy

So it is same as gross profit?
Comment from : @sushantjadhav1755

why you sound very serious but your illustration and your profile look friendly and chill
Comment from : @enerxiazelementa

Thank you I didn't understand these concepts until I watched your video Great explanation
Comment from : @ohromujici

This video explains the mechanics of EBIT/DA but not the reasoning Even in your example, you simply state that EBITDA is useful to know, but not what it tells you in this example
Comment from : @Overthought1

It is becoming more clear for me thank you !!
Comment from : @merriemec5309

Is there anyone watching this after watching Boys
Comment from : @muad945

Dear Friends, Could you write the formula of EBITDA breakeven? Thanks
Comment from : @ntcuong01ct1

I’m just here since Vought’s EBITA margins dropped and I was wondering how Homelander was going to handle it
Comment from : @Goedendag28

Homelander needs to watch this video
Comment from : @majorevangelism

Thank you this was very helpful
Comment from : @Astridah_M

Thanks for the video !
Comment from : @nerycarrasco3862

Why is amortization not explained?
Comment from : @fak119

I'm a student in France, i love finance because it is the subject of my studies, i saw a plenty of videos talking and dealing with financial topics, but honestly i found out that your content is the highest and improved one, which discusses all financial issues in a simplified manner Good work sir
Comment from : @fares643

TTCF had an EBITA of -659M in '21Q3 vs AAPL OF 2678B in the same quarter
Comment from : @weekendhomeprojects

Thank you for the short but direct and informative video
Comment from : @joeabad5908

If a company has deposit interest earnings, how would you take this into account when calculating ebitda, is it supposed to be removed from ebitda so ebitda would be a smaller figure?
Comment from : @datvideozv9361

so touching for an excellent video
Comment from : @thongdinh5169

Earning before interest and tax and depreciation, so interest and tax is included or not because it says earning before also, how it shows only operating value if depreciation is also calculated and tax also calculated??
Comment from : @afridiansari1021

Thanks for the presentation brI have a question regarding EBITDA:brWould you define EBITDA as a company's performance indicator, so EBITDA equals Operative Profit (Revenue, minus Cost Of Sales, minus S,G&A, minus R&D)??brThanks
Comment from : @oceaniccoffee6405

Nice brWay of presentation is superb 👏brThank you 🥳✌
Comment from : @bharathm763

A very educative video for me!
Comment from : @abdul-mumindambatahidu5080

holy fuck, some people are just meant to teach THank you sir
Comment from : @johnnyplank3964

How is EBITDA greater than EBIT at 1:49 ?
Comment from : @kushsmart5828

But at the end we want to know the profit after tax If u make losses for a decade thats a metric too Interest and depreciation are part of your healthy financials Perhaps you pay too much interest or bought too expensive capex U cant say well I have a healty head arms body But not looking at my legs
Comment from : @mathijs9365

First time viewer and instant subscriber Thank you and keep up the good work 👍🏽
Comment from : @ronharris3411

Couldn’t have explained it any better, loved it
Comment from : @ricardocolyersanchez3534

Thank You Sir for explaining it clearly brI would like your comments on understanding CAPEX intensive Biz like semiconductors , Trucking etc
Comment from : @dpdp006

Not clear though I like your truck illustration
Comment from : @stando4592

SOO Helpful! Thank you!
Comment from : @cindydavid4550

Yes, it was nice thanks for your uploads
Comment from : @RaspreetSinghJaggi

thanks
Comment from : @chewkeat

Thanks
Comment from : @searchrightthings947

Love your videos 🙌🏻 thank you!
Comment from : @catm4993

subscribed to channel after listening to the first 50 secs
Comment from : @geddamurisatish

Very helpful Sir
Comment from : @imaniameniel1590

From the bottom of my heartthank you I will never get over the shock of paying an absurd amount of money each semester only to have my instructor give me a paper and essentially say "ok figure it out!" No lecture or demonstration or discussion whatsoever I have subscribed!
Comment from : @cait8573

Absolutely loved it Thank you!
Comment from : @gwgtaylor

Helpful Why does Charlie Munger think EBITDA is bs ?
Comment from : @lypo2751

Thank you very much for a great explanation
Comment from : @JAGANMOHANMANTHENA

You are an absolute genius to be honest you made it so easy to understand even though I am a finance student I didn't know the concept much and the college didn't help much your videos are seriously great I am gonna watch each and every one of them Thank you so much
Comment from : @snehalsahoo5400

Who are those dislikers??
Comment from : @igorbolev1553

Thanks for the explaination Sometimes Ialways asked mydself am i stupid or what as I am a technical driven more than finance I don't seems to get throught the meaning of EBITDA And after watching your video, it is as simple as ABC THANKS!!!
Comment from : @gibbgibbs3691

Thank you so much for this profound explanation!
Comment from : @SolomFoz

Very helpful! Thank you very much, got a sub😃👍
Comment from : @cristianv7228

Thanks for making this simple to understand 😊
Comment from : @johnoliver4664

Perfectly understandable
Comment from : @gulbanoomussani3496

Good explanation clearly delivered
Comment from : @PhilipPieterse1

thankyouu
Comment from : @thotdoedoe6564

You need to hire an artist
Comment from : @richardhumphrys7907

Thanks for this, I lso wanted to know what is Adjusted EBITDA ? in a similar easy story telling way :-)
Comment from : @MrShanks008

Another excellent video
Comment from : @pnonem666

Thank you for making this!
Comment from : @diegocastro9724

Simple yet great explanation on EBIT and EBITDA without the need to decipher accounting textbooks 📚🙏✌️
Comment from : @Friderikas

EBITDA still sounds like something Latka from Taxi would say
Comment from : @MrDabag001

This was very explanatory! I finally get it, thanks!
Comment from : @ivanmeno

Really appreciate your videos Always used when I want to get my fundamentals right
Comment from : @NavaneethaKrishnanK1984

Thank you It's easy to understand Even some words are too difficult for me to catch as my mother language is not English But in general this video is very helpful Thank you so much
Comment from : @begood7563

Quick and easy Thanks for the review!
Comment from : @TiA-tx5yp

Thats the best truck I ever seen!!!
Comment from : @FunnyAsian00

That is one beautiful truck
Comment from : @TheQuietProfessional

Simple and to the point Good Video
Comment from : @alexgehales

If I see Alec Baldwin’s stupid face again I’m throwing tomatoes at him
Comment from : @koryvogel3197

Could anyone please englighten me on whether the interest in the EBIT or EBITDA refers to interest expenses only or both the interest expenses & interest income (ie net of interest) ???
Comment from : @huchmoz

Fantaistic - made so so simple! Thank you
Comment from : @drlucy4470

Thanks for this :)
Comment from : @bubblegum3790

Don't understand why depreciation and interest would be excluded, notwithstanding your explanation Revenue to the extent it is reported would not be generated without the capital and finance (cost of which is depreciation and interest) These are relevant expenses
Comment from : @pigslefats

that is a LOVELY truck :)
Comment from : @trollface1994

Should companies focus more on EBITDA as one of their main financial metrics? Yes/no? Why? Let me know by commenting below
Comment from : @TheFinanceStoryteller

currently writing a report for uni and i can honeslty say that I learnt more from this video than my lecturer, and shes amazing!! great work
Comment from : @Langgzxxx

Great!
Comment from : @mwiingacheelo5587

Very clear
Comment from : @chrisdennett7452

bWow! This is super! I so am inspired to watch more and more of ur videos/b iTysm/i
Comment from : @jamesperry3837

the best finance videos i have found in youtube so far!!! man you are great!!!
Comment from : @wgmentis9906

Very helpful thank you
Comment from : @Blazetoamaze

For someone that absolutely hates this stuff, but needs to understand it, this was amazing Great job!
Comment from : @DogBellz

This was very informative and simple It was very helpful to understand what I thought would be a complicated theory of understanding Thank you It is greatly appreciated
Comment from : @aliciawilliams5170