Comparison between businesses

saifulislam15@g

Well, if you want to know the general health of the organization you have to calculate the EBIT. The good news is that this indicator allows you to isolate the operating income and expenses of each division. Ability to generate results Last but not least, we have that EBIT shows the ability of a business to generate results , that is, money. A company can be very beautiful and its brand can be relevant to the market, but in the end all that matters is that it is capable of producing the most money without having such high costs. That is where we must focus. EBITDA Advantages Let's now look at the advantages that EBITDA offers us to calculate the potential of a business.


Shortcut to calculate a company's cash flow First of all, we have to Belarus WhatsApp Number say that this is a much shorter way to detect the money that a company has available to pay the debts and all the expenses it has incurred. Let's remember that cash is like oxygen for a human being , we only realize when it is not there, so the more liquidity the organization has, the better the opportunity will be. Detect the solvency of the corporation With the EBITDA we will quickly see the solvency that any company has , that is, if it has the capacity to meet its own expenses.





From there we will determine if you have a sufficient debt coverage ratio. One of the great advantages of EBITDA is that it allows you to compare companies to make the most appropriate decision when investing your money. In fact, we love the fact that you can evaluate historical and broader industry data to understand what the environment is around you. So, by eliminating taxes and depreciation you will have a clearer figure on the health of the project. EBIT vs EBITDA There is no doubt that EBIT is one of the most important indicators in the business world. It is true that there are more and more metrics that must be taken into account, but this should be at the beginning of any list.