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What is the difference between EBIT and EBITDA?

  1. A EBITDA excludes depreciation and amortisation, EBIT includes them
  2. B EBIT excludes tax, EBITDA includes it
  3. C There is no difference
  4. D EBITDA is calculated after interest
Answer

EBITDA excludes depreciation and amortisation, EBIT includes them

EBITDA adds depreciation and amortisation back to EBIT, removing the effect of non-cash charges and differing capital intensity between companies.

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