http://besttradingrate.net/ Currency Exchange Topic: explanation of an online investment foreign exchange firm comparison and evaluation information en Thu, 29 Jul 2010 14:23:58 +0000 http://besttradingrate.net/topic/explanation-of-an-online-investment-foreign-exchange-firm-comparison-and-evaluation-information#post-14815 Wed, 07 Oct 2009 06:15:05 +0000 theresa_christian 14815@http://besttradingrate.net/ <p>greetings!<br /> I am occasionally asked as to what earnings before interest, tax and depreciation is.<br /> Earnings before interest, tax and depreciation is an indicator of a company's financial performance, which is calculated as:<br /> This measure attempts to gauge a firm's profitability before any legally required payments, such as <a href="http://groups.yahoo.com/phrase/online-brokerage-services">taxes</a> and interest on debt, are paid. <a href="http://www.youtube.com/?v=gaVyMgsSiLg">depreciation</a> is removed because this is an expense the firm records, but does not necessarily have to pay in cash.<br /> EBITD is very similar to earnings before interest, taxes, depreciation and amortization (EBITDA), but excludes amortization.<br /> The difference between amortization and depreciation is subtle, but worth noting. Depreciation relates to the expensing of the original cost of a tangible assets over its useful life, while amortization is the expense of an intangible asset's cost over its useful life. Intangible assets include, but are not limited to, goodwill and patents, and are unlikely to represent a large expense for most firms.<br /> Using either the EBITD or EBITDA measures should yield similar results. </p>