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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?

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