DEFINITION of 'Earnings Before Interest, Taxes, Depreciation, Amortization And Special Losses - EBITDAL'

A measure of a company's financial performance that looks at earnings before the inclusion of interest, taxes, depreciation, amortization and losses. These losses can be related to non-recurring expenses such as a loss in derivatives used to hedge currency or expense risks.

BREAKING DOWN 'Earnings Before Interest, Taxes, Depreciation, Amortization And Special Losses - EBITDAL'

A company may include this performance measure in its financial statements to give an idea of the earnings the company generates from its ongoing operations. This measure is used especially when there is a period of large one-time special losses.

This non-GAAP measure along, with a myriad of others, is used in an attempt to make earnings figures either appear better than they actually are, or to give a more accurate picture of the operating results of the company. This makes it vital to understand the measure being used by the company along with its reasoning behind including it.

RELATED TERMS
  1. Earnings Before Interest, Tax and ...

    An indicator of a company's financial performance, which is calculated ...
  2. Nonrecurring Gain Or Loss

    A one-time or highly infrequent profit or loss. One-time gains ...
  3. Nonrecurring Charge

    An entry that appears on a company's financial statements for ...
  4. Earnings Before Interest, Depreciation ...

    A measure of the earnings of a company that adds the interest ...
  5. Amortization

    1. The paying off of debt in regular installments over a period ...
  6. Operating Loss - OL

    The net loss recorded as a result of a company's unprofitable ...
Related Articles
  1. Investing

    EBITDA

    Otherwise known as Earnings Before Interest, Taxes, Depreciation and Amortization. Learn more about this indicator of a company's financial performance.
  2. Investing

    Amortization

    Amortization and depreciation are two ways to prorate the cost of an asset's life. Learn more about the former and how it it's calculated.
  3. Investing

    Explaining Amortization In The Balance Sheet

    Amortization is important to account for intangible assets. Read to find out more about amortization.
  4. Investing

    Explaining Amortization In The Balance Sheet

    Amortization occurs when an asset’s value decreases over time, usually over its estimated useful life.
  5. Investing

    Depreciation

    Amortization and depreciation are two ways to prorate the cost of an asset's life. Learn more about the latter and how it it's calculated.
  6. Trading

    Understanding Currency Depreciation

    Currency depreciation occurs when a currency’s value falls in comparison to other currencies.
  7. Investing

    An Introduction To Depreciation

    Companies make choices and assumptions in calculating depreciation, and you need to know how these affect the bottom line.
  8. Investing

    What are Non-GAAP Earnings?

    Non-GAAP earnings are a company’s earnings that are not reported according to Generally Accepted Accounting Principles.
  9. Investing

    What Is The Difference Between A Cash Flow Statement And An Income Statement?

    A firm’s cash flow statement measures the sources and uses of its cash. The income statement shows how it is financially performing.
RELATED FAQS
  1. What is the difference between recurring and non-recurring general and administrative ...

    Understand the expenses involved in a company's general and administrative operating costs and the difference between recurring ... Read Answer >>
  2. What is the tax impact of calculating depreciation?

    Understand the tax implications of a company's depreciation. Learn how differences in accounting methods change the amount ... Read Answer >>
  3. Where do traders place orders when they identify ascending triangles?

    Learn which businesses are required to depreciate or amortize capital expenses, or CAPEX, and which businesses are eligible ... Read Answer >>
  4. What are the differences between gains & losses and revenue & expenses?

    Learn how to distinguish between gains, losses, revenues and expenses. Take a look at how accountants record each category ... Read Answer >>
  5. What is the relationship between accumulated depreciation and depreciation expense?

    Understand the relationship between accumulated depreciation and depreciation expense. Learn how each one is accounted for ... Read Answer >>
  6. What is the difference between operating income and EBITDA?

    Read about the major differences between earnings before interest, taxes, depreciation and amortization (EBITDA) and operating ... Read Answer >>
Hot Definitions
  1. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  2. Money Market

    A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
  3. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  4. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  5. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  6. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
Trading Center