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. Earnings Before Interest, Depreciation ...

    A measure of the earnings of a company that adds the interest ...
  3. Nonrecurring Gain Or Loss

    A one-time or highly infrequent profit or loss. One-time gains ...
  4. Amortization

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

    The net loss recorded as a result of a company's unprofitable ...
  6. Earnings Before Interest, Taxes, ...

    A non-GAAP indicator of a company's financial performance calculated ...
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

    Explaining Amortization In The Balance Sheet

    Amortization is important to account for intangible assets. Read to find out more about amortization.
  3. 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.
  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

    What are Non-GAAP Earnings?

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

    What are Earnings?

    The amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year.
  7. 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.
  8. Personal Finance

    Mortgage Amortization Strategies

    Should you get a 30-year mortgage? A 15-year one? Ways to decide which mortgage is the best fit.
  9. Investing

    Why Non-GAAP Earnings Reports Have Jumped

    Companies' rising use of non-GAAP accounting is making many earnings reports look far better than they are, a key warning signs for investors
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. How should you choose the amortization period for your mortgage?

    Read about key considerations that homeowners should take into account before choosing the amortization period for their ... Read Answer >>
Hot Definitions
  1. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  2. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  3. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  5. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
  6. Porter Diamond

    A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to ...
Trading Center