What is EBITDA?

A TERM ALL PHYSICIAN INVESTORS MUST KNOW

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What Is Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)?

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EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company’s overall financial performance and is used as an alternative to net income in some circumstances. EBITDA, however, can be misleading because it strips out the cost of capital investments like property, plant, and equipment.

This metric also excludes expenses associated with debt by adding back interest expense and taxes to earnings. Nonetheless, it is a more precise measure of corporate performance since it is able to show earnings before the influence of accounting and financial deductions.

Why EBITDA is still a Great Financial Management Metric

Simply put, EBITDA is a measure of profitability. While there is no legal requirement for companies to disclose their EBITDA, according to the U.S. generally accepted accounting principles (GAAP), it can be worked out and reported using the information found in a company’s financial statements.

The earnings, tax, and interest figures are found on the income statement, while the depreciation and amortization figures are normally found in the notes to operating profit or on the cash flow statement. The usual shortcut to calculate EBITDA is to start with operating profit, also called earnings before interest and tax (EBIT) then add back depreciation and amortization.

CITE: https://www.r2library.com/Resource/Title/0826102549

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Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

MORE: https://www.routledge.com/Comprehensive-Financial-Planning-Strategies-for-Doctors-and-Advisors-Best/Marcinko-Hetico/p/book/9781482240283

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PODCAST: The 10 Top Technology Trends Shaping the Future of the Pharma

THE CULTURAL SHIFT

Dr. Bertalan Meskó, MD

The pharma industry has taken a big swung into digital transformation. All participants invest in digital health topics.

But as with all trending issues, and there is a lot of fuss that is hard to see through. As the medical community increasingly acknowledges the importance of digital health, the cultural shift we so often talk about is still a way to go. To change that, the first step is always getting to know what’s coming.

In this article, with podcast, Bert collected the trends changing the pharmaceutical industry.

ESSAY AND PODCAST: https://medicalfuturist.com/top-10-trends-shaping-future-pharma/?utm_source=The%20Medical%20Futurist%20Newsletter&utm_campaign=3a501b1978-EMAIL_CAMPAIGN_2021_09_05_Resend&utm_medium=email&utm_term=0_efd6a3cd08-3a501b1978-399696053&mc_cid=3a501b1978&mc_eid=40fee31c25#

YOUR THOUGHTS AND COMMENTS ARE APPRECIATED.

Thank You

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