EBITDA Ambiguity - if EBITDA excludes Depreciation and Amortization, why do we subtract D and A from it to get EBIT?

RGTrader's picture
Rank: Monkey | 49

I dont really get EBITDA. It is earnings before all that so I assumed that it contained D and A. but if it excludes D and A, how can we subtract D and A to get Ebit? Wouldnt that be subtracting a non existent thing? Thanks!