Is it a gaffe or is it right.. EBIDTA coming after Net Profit After Tax?? Whatever less knowledge i have about financial statements, EBIDTA comes before PAT?? Please enlighten me.
Source: Hindustan Times- April 24, 2011. Mumbai edition.
EBITDA comes before NPAT. The tax is calculated after involving all expenses (whether cash expenses or non-cash expenses).
Maybe they did derive the NPAT after EBITDA but to show how well they are doing, they would have calculated NPAT and shown EBITDA.
A cash profit is derived from EBITDA (Because unlike profit, cash doesn't reduce due to expenses like Depreciation and Amortisation - both of which are non-cash expenses of all firms/ organizations).
EBITDA comes before NPAT. The tax is calculated after involving all expenses (whether cash expenses or non-cash expenses).
ReplyDeleteMaybe they did derive the NPAT after EBITDA but to show how well they are doing, they would have calculated NPAT and shown EBITDA.
A cash profit is derived from EBITDA (Because unlike profit, cash doesn't reduce due to expenses like Depreciation and Amortisation - both of which are non-cash expenses of all firms/ organizations).
Profound learning indeed!!! thank you
ReplyDelete