• Earnings before interest, taxes and depreciation (EBITA) excludes due taxes, interest on a company’s debt, and the effects of amortization, which is the accounting practice of writing off the value of an intangible asset over a period of years, from the income equation.
  • This metric can provide a more accurate picture of a company’s true performance over time.
  • EBITA can also make it easier to compare one company to another in the same industry.