EBIT vs EBITDA: What You Must Know!

💥Profitability Ratios Cheat Sheet → accountingstuf...
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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[@TheGippy30]

James I’m so glad you haven’t given up, you’ve great great style of delivery and passion, keep up the great work you’re the best

[@AccountingStuff]

Thanks, plenty more to come

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Best accounting teacher on KZbin, keep making videos please! 😁

[@AccountingStuff]

Thanks, will do!!

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James you carried my accounting exam with your amazing videos :) amazing work and crazy how you can teach me accounting ten times better in three days compared to my professors in 4 months

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[@accountingstuff7625]

📤

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You have a way of explaining things so clearly. You have a gift man! keep it up!

[@AccountingStuff]

Cheers Gabriel!

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James, it’s funny you uploaded a video today, I was trying to contact you to thank you for everything you’ve done to help us learn accounting. I recently started a masters in accounting in nyc and I’ve been going through your videos and I also bought all your cheat sheet. Please keep on going we all love the way you just make accounting a joy to learn. Thank You 🙏🏼

[@AccountingStuff]

Cheers Anaf, best of luck in your masters!! I hope you smash it :)

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Thank you James, I watched this lecture twice for my CPA preparation. Shout out to you.

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following you since college. ❤️

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An OG! Hope the channel has been helpful for you

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It's been too long!

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I know 😃

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Absolutely useful!

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Thanks buddy :)

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Omg!! I have watched every single one of your videos! Finally a new one!!! Thanks bunches!

[@AccountingStuff]

I hope to make many more :)

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Return of the king

[@accountingstuff7625]

🔼

[@AmokZuta]

Happy to see you again ❤️

[@AccountingStuff]

Thanks Amok, good to be back :)

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We love you James !! keep up the good work ... ~ from South Africa.

[@AccountingStuff]

Cheers Thabo!

[@soapshowdown4721]

Hey man, great vid! I appreciate your summaries and explanations. (I also bought you cheat sheets on most accounting concepts). My curiosity is unsatisfiable so when you say that EBIT and operating profit are the same, USUALLY, its drives me crazy to not hear about the exceptions. to google I go. Great to see youre back to making new content!

[@AccountingStuff]

Thanks for your feedback :)

[@KimTran-uv1ib]

Hi James, Welcome to Sydney! Glad to see your videos

[@AccountingStuff]

Thanks Kim!

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You are the best!! ♥️ Am Jay From Southern Africa, Zambia 🇿🇲

[@accountingstuff7625]

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James is back, nice one

[@AccountingStuff]

Thanks Chibueze!

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Finally you are back

[@AccountingStuff]

It's been too long!

[@MrDCD007]

Hi James happy to see you again all the best

[@AccountingStuff]

Cheers Derick, hope all's well with you!

[@MrDCD007]

@@AccountingStuff hi James going very well completing 5 years tomorrow

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Something new to learn!!

[@accountingstuff7625]

🔼

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This was my recommendation!

[@accountingstuff7625]

🔼

[@monah2030]

Hi James I just start online accounting and book keeping course. Totally new to me . What’s the best way to do my course. Watch your videos and I’ve learnt a lot . Welcome to Sydney 😀

[@AccountingStuff]

Good on you! I'd spend a decent amount of time on the basics because there are a few principles that underpin the whole of Accounting. Once you fully understand how they work then everything becomes much easier.

[@niteshsharma7396]

Thank you James, and good to see you back. I am also in Sydney, lets plan to catchup. Again great video and you have such great knowledge of finance. :)

[@bowen.bo_en]

Clear explanations for non-finance major students

[@AccountingStuff]

Glad you're finding these useful

[@faizanshabir8193]

Please make videos on International Accounting Standards, Financial Ratios & Provision for bad debts.

[@Wale_mo]

This will be great, James pls do video on standard IAS, IFRS and others. Thanks

[@AccountingStuff]

Thanks for your request!

[@prakashjoshi4933]

Hi James, thanks for this, could you please make a Video on difference in CPA and CA job difference.

[@AccountingStuff]

Thanks for your request!

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kzbin.info/www/bejne/q5DOXoanaqeqjqc Try this, Amanda was a teacher of mine and is epic. James welcome back to Sydney hope you're in Manly not Bondi.

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Good to see you again, James. Take care in a new country. All the very very best in whatever goal you set for yourself. 🐠🦉🐨

[@AccountingStuff]

Thanks Grace!! All the best :)

[@tawananyashadhakwa7874]

Please do a video on Control accounts

[@AccountingStuff]

Thanks for your request!

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Appreciate your work…..you ever think about starting a managerial accounting playlist or quick books or excel, oracle et cetera or other accounting, economics, actuarial science, investment or finance…..god bless…..r ye Scottish

[@claudiaquirogablanco3224]

Hello James a silly request can you explain MARK UP AND MARGINS please please please por favorcito

[@tracyliu2497]

Hi James, can you please talk about the DTL and DTA in your next video? Thanks!

[@AccountingStuff]

Thanks for your request!

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YOU ARE VERY GOOD

[@accountingstuff7625]

🔼

[@monah2030]

Hi James Just start online accounting and book keeping course. Completely new to me . Watch your videos and I’ve learnt a lot . What do you recommend? Welcome to Sydney 😀

[@accountingstuff7625]

🔼

[@Mike-lr1xh]

you are amazing. please can you do derecognition of assets (PPE)

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James your explanations are always great

[@AccountingStuff]

Cheers Nick!

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great video james !!!

[@AccountingStuff]

Thanks!

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Hi James 👋, thank you so much 😊. Can you please do a video on Petty Cash Book😭😭one day.

[@AccountingStuff]

Thanks for your request!

[@vasimrajam]

James,well done & keep move on.

[@AccountingStuff]

Thanks, will do :)

[@FitRadio]

Welcome back! i believe a DTA and DTL video would be great! What do you think?

[@AccountingStuff]

Thanks for your request!

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The best accounting channel...!

[@AccountingStuff]

Cheers Haroon!

[@youtuber.9624]

Hi James, Do you have a video that explains the accounting standards (GAAP & IFRS)? If not, can you make one, please? Thank you.

[@accountingstuff7625]

🔼

[@enigmagrl-gm7gm]

Hi your videos are really helping through a very intense accounting part of my course. Any chance you could do one on bad debts? I can’t seem to find one on your list.

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James are there any books one can access to understand accounting in real-world settings?

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Can make vedio on how to handle small business

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Hlo James! Please make a video on fund flow statement please...

[@accountingstuff7625]

🔼

[@Wale_mo]

Welcome back James, pls continue the good work. I like you♥️

[@AccountingStuff]

Thanks, will do!

[@MandeepKaur-is1nb]

How about EBITD earnings before interest and tax and dividend???

[@accountingstuff7625]

🔼

[@CypriotJumanji]

have you got any videos on the journals for hire purchases?

[@deebaji]

Very Informative video n appreciate the way of teaching..

[@AccountingStuff]

It's my pleasure

[@scottmponthie3537]

Can someone explain to be the difference between an account and a journal?

[@nadirbaig156]

How make the trial balance income statement and balance sheet in construction company with example.

[@ellenoir5678]

So EBITDA is the value of the company correct?

[@AccountingStuff]

Not exactly, this could be a topic for a future vid :)

[@ellenoir5678]

Notification stays on my brother lol

[@aminedarjaj9259]

can you plz make a video about bad dept/allowance for doubtful accounts??

[@AccountingStuff]

Thanks for your request!

[@aminedarjaj9259]

@@AccountingStuff and thank you for everything, keep up 🔥

[@pubuduwijesinghe6671]

How to calculate Free cash flow?

[@toluogu6120]

Great Video, Could you please do one on VAT returns.

[@AccountingStuff]

Thanks for your request!

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Hi please can you make a video about irrecoverable and doubtful debts?

[@AccountingStuff]

Thanks for your request!

[@eynerquispesanchez7742]

interesting

[@charismabatharadewa5818]

is EBIT equals to Profit before tax?

[@budakamerika]

you always so funny!!!!!! XD i enjoy your little jokes in all videos i laughed so hard seeing them lollll. and thanks for the great explanation

[@AccountingStuff]

Glad you enjoyed it!

[@user-xedwsg]

EBIT vs operating income?

[@bharathidilipan.t9486]

Can you explain the concept working capital, I am very much confused how the negative working capital is good in certain cases? If the current ratio is less than 1 how could the business pay its short term debts

[@AccountingStuff]

Thanks for your request!

[@MrIsla011]

Amazing Thanks so much :)

[@AccountingStuff]

No problem!

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🔥🔥🔥

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🔼

[@ihateladygagaposers9]

Bought your cheat sheets a couple weeks ago. And cant figure them out to be helpful for me. I emailed you and havent heard back

[@AccountingStuff]

Thanks for supporting the channel! The cheat sheets contain all the key information from my videos. You can use them as reference guides to help jog your memory on each topic.

[@ihateladygagaposers9]

Guess i thought they would be different

[@Native_love]

Charlie Munger, "You can understand EBITDA statements a lot easier if you substitute in the word B###$#!+." Good to know but not in an investment.

[@reanwithkimleng]

❤❤❤❤

[@AccountingStuff]

❤

[@fabianrichburgh6517]

why couldn't my teacher just say this

[@madelineperry8112]

Studying for the CIA part 3 with no accounting background and I said the same thing! The gliem prep book is not direct at all. This guy is a life saver!

[@hudhaifa7580]

Hey James i sent you dm on Instagram and hope u take the time to respond