Earnings Before Interest, Taxes, Depreciation, Depletion, Amortization and Exploration Expenses - EBITDAX
Definition of 'Earnings Before Interest, Taxes, Depreciation, Depletion, Amortization and Exploration Expenses - EBITDAX'An indicator of a company's financial performance calculated as:= Revenue - Expenses (excluding tax, interest, depreciation, depletion, amortization and exploration expenses) |
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Investopedia explains 'Earnings Before Interest, Taxes, Depreciation, Depletion, Amortization and Exploration Expenses - EBITDAX'EBITDAX is used when reporting earnings for oil and mineral exploration companies. It excludes costly exploration expenses and gives the true EBITDA of the firm.This is especially useful when a company wants to acquire another company. The EBITDAX would cover any loan payments needed to finance the takeover. |
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