Operating Income Before Depreciation And Amortization - OIBDA

Dictionary Says

Definition of 'Operating Income Before Depreciation And Amortization - OIBDA'

A non-GAAP measure of financial performance used by companies to show profitability in continuing business activities, excluding the effects of capitalization and tax structure. 

Sometimes OIBDA is also considered to not include items such as changes in accounting principles that are not indicative of core operating results, income from discontinued operations and the earnings/losses of subsidiaries.

Calculated as:

Operating Income Before Depreciation And Amortization (OIBDA)
Investopedia Says

Investopedia explains 'Operating Income Before Depreciation And Amortization - OIBDA'

This measure is gaining ground as companies move away from using earnings before interest, taxes, depreciation and amortization (EBITDA). These two measures are similar except in terms of the income numbers they use. In OIBDA, the calculation is started with GAAP net operating income. In EBITDA, the calculation is started with GAAP net income.

Unlike EBITDA, OIBDA does not incorporate non-operating income. This is seen as an advantage for comparison purposes because non-operating income usually doesn't reoccur year after year and its separation from operating income ensures that all income reflects only the income earned from regular operations.

Related Definitions

  • Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA

    An indicator of a company's financial performance which is calculated in the following EBITDA calculation: EBITDA is essentially net income with interest, taxes, depreciation, and ...
    Read More »
  • 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. Earnings typically refer to after-tax net ...
    Read More »
  • Operating Income

    The amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation. Operating income takes the ...
    Read More »
    • Generally Accepted Accounting Principles - GAAP

      The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by ...
      Read More »
    • Amortization

      1. The paying off of debt in regular installments over a period of time. 2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More ...
      Read More »
    • Depreciation

      1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes. 2. A decrease in an asset’s ...
      Read More »
    • Net Income - NI

      1. A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. ...
      Read More »

Articles Of Interest

Partner Links