Quick! Show Me Your Value

Earnings Before Income Taxes:

Net sales (or revenue) minus all expenses except income taxes, specifically COGS, other revenue-driven expenses, fixed operating expenses, and interest expenses.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA):

Calculated by looking at earnings after COGS, other sales-driven expenses, and fixed operating expenses have been removed from revenue, but before interest, taxes, depreciation, and amortization are taken into account.

Effectiveness:

Creating new or additional impact on an organization ‚ s financial measures or financial statements such that the impact makes a significant or sizable difference to the success of the organization.

Efficiency:

Delivering the same level of benefit as before but at a lower intervention cost.

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