Definition; EBITDA goal

Dom — Fri, 20 Feb 2009 08:57:42 GMT

What is an 'EBITDA goal'?

RE: Definition; EBITDA goal

goldengopher — Fri, 20 Feb 2009 09:07:37 GMT

Earnings Before Interest, Tax, Depreciation and Amortization

RE: Definition; EBITDA goal

OronD — Fri, 20 Feb 2009 09:55:44 GMT

Hi Dom,
That is: Earnings Before Interest, Taxes, Depreciation and Amortization. That is an approximate measure of a company's operating cash flow based on data from the company's income statement. Just as a company sets goals for sales or net profit a company can and should set goals for the EBITDA (give a certain figure that the company will aim to reach).
Best regards,

RE: Definition; EBITDA goal

Dom — Fri, 20 Feb 2009 09:57:21 GMT

Very many thanks. Is that the same as Gross Revenue?

RE: Definition; EBITDA goal

OronD — Fri, 20 Feb 2009 10:04:07 GMT

Hi Dom,
You are welcome. No Gross sales is actually the total sales. EBITDA reffers to earning (that means sales minus the many expenses [labor, material, energy, marketting.... etc]).
Best regards,

RE: Definition; EBITDA goal

goldengopher — Fri, 20 Feb 2009 13:39:54 GMT

Grosss Revenus is the following: Raw" sales income; the amount customers actually pay the company when they make their purchases. When a company sells products, it has to make allowances for some portion of its sales for products expected to be returned, lost in delivery, or otherwise requiring the company to refund the customers' money. The "official" revenue number, known as sales revenue, equals gross revenue minus these allowances. Gross revenue is generally not an interesting number for investors. One case where it is interesting is when you're tracking the progress of a startup company. It's possible that at the very beginning they'll be doing such a tiny amount of business that actual sales will be less than the allowances for refunds, meaning that sales revenue will technically be a negative number. In this case the company will issue news releases about its gross revenue, so investors will at least know that a few customers have been showing up and laying out some cash.