What is the explanation of EBITA in accounting?

[accountinglads]

ebita meaning is a way to find out how profitable a company is from its main operations. The non-inclusion of interest expenses, tax expenses and amortisation of intangible a###ets simplifies the view of how the company operates. EBITA still captures depreciation which EBITDA omits. Investors turn to EBITA when they are trying to measure companies in different sectors by removing factors that could be very unpredictable between companies. With companies that have mainly intangible a###ets such as tech or media, this metric is especially useful for evaluation.