Revenue Vs Income Vs Ebitda

One key distinction is that revenue is reported as it is accrued rather than as cash is received.

Revenue vs income vs ebitda. Net income on the other hand is calculated by subtracting revenue from the overall cost of doing the business. Two metrics related to ebitda are ebt which is earnings before taxes and ebit which is earnings before interest and taxes. Calculating revenue is part of drawing an income statement. Ebt simply adds back in the amount a company paid in taxes to net.

Revenue is not the same as cash however. Ebitda is somewhat similar to net income as both of their values are subject to change because some of the elements involved in their calculation might be subjected to manipulation by the companies. Here are the key differences between them. Key differences between ebitda and net income.

On the other hand net income is used to find out the earnings per share of the company. Ebit can be measured by reducing the operating expenses from revenue or by adding interests and taxes to net income. However there are differences between the two profitability metrics. Ebit is an indicator of profitability which often represents the operating income of a company or firm with a few exceptions of course.

Ebitda vs net income infographics. Ebitda indicates the profit of the company before paying the expenses taxes depreciation and amortization while the net income is an indicator that calculates the total earnings of the company after paying the expenses taxes depreciation and amortization.