Calculating EBITDA
Typically would always calculate EBITDA as Earnings Before Tax + Interest Expense + D&A from the CFS.
Then would make relevant adjustments for non-cash/non-operating/non-recurring items for example adding back SBC (non-cash), backing out non operating income (investment income, gain on asset sale for example), adding back fixed asset impairment or impairment of goodwill (non-cash), etc.
In what scenario would you personally also be adding back other impairments for example impairment of inventory. This is technically non cash and added back in the CFS to arrive at NOCF.
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