- Trending Categories
- Data Structure
- Operating System
- MS Excel
- C Programming
- Social Studies
- Fashion Studies
- Legal Studies
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Write the difference between EBITDA and net income.
The major differences between EBITDA and net income are as follows −
It calculates profit making ability of a firm.
The earning potential of a company can be calculated.
EBITDA is defined as sum of EBIT, depreciation and amortisation (or) sum of net profit, taxes, interest, depreciation and amortisation.
Tells about money income generated before expenses (taxes, interests, depreciation and amortisation).
There is Overstates the cash flow.
It is used by start-ups.
It indicates total earnings of a company.
It calculates earning per shares (EPS).
Net income is defined as difference between revenue and cost of doing business.
It tells about total earnings after reducing expenses (interest, tax, depreciation and amortisation).
There is no overstates the cash flow.
It is used by established/grown up company.
- Related Articles
- Write the difference between Net operating income and net income.
- Distinguish between EBIT and net income.
- Write the difference between present value and net present value.
- Difference between Personal Income and Personal Disposable Income
- Differentiate between EBIT AND EBITDA.
- Difference between Disposable and Discretionary Income
- Difference between C# and .Net
- Difference between Payroll Tax and Income Tax
- Difference between Income Tax and Capital Gains Tax
- What are steps involved in calculating EBITDA and EBITDA coverage ratio or How EBITDA and EBITDA ratio is calculated?
- Net Income Approach of Valuing a Firm
- What is difference between balance sheet and income statement?
- Difference between Income Protection Insurance and Critical Illness Insurance
- Difference between Managed and Unmanaged code in .NET
- Explain Net operating income theory of capital structure.