EBITDAR (Meaning) | Formula | Calculation with Example

In this video on EBITDAR, we are going to learn this topic in detail including definition, formula and practical example. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐄𝐁𝐈𝐓𝐃𝐀𝐑? -------------------------------- EBITDAR is earnings before interest, taxes, amortization, rent / restructuring. It is used to evaluate the economic performance of businesses that have very high rent expenses. 𝐄𝐁𝐈𝐓𝐃𝐀𝐑 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 ------------------------------------ EBITDAR = Net Income + Interest + Taxes + Depreciation + Amortization +Rent 𝐄𝐁𝐈𝐓𝐃𝐀𝐑 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 ------------------------------------ Consider ABC Company with the following data - Net Income – $1500 Millions Interest – $350 Millions Taxes – $125 Millions Depreciation – $160 Millions Amortisation – $85 Millions and Rent – $150 Million By using formula we get, EBITDAR = Net Income + Interest + Taxes + Depreciation + Amortisation + Rent = 1500 + 350 + 125 + 160 + 85 + 150 = $2370 Millions