What is 'Operating Income Before Depreciation And Amortization - OIBDA'

Operating income before depreciation and amortization (OIBDA) is 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)

BREAKING DOWN '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 TERMS
  1. Operating Earnings

    Profit earned after subtracting from revenues those expenses ...
  2. Operating Income

    The amount of profit realized from a business's operations after ...
  3. Non-GAAP Earnings

    An alternative earnings measure of the performance of a company. ...
  4. EBITDA Margin

    A measurement of a company's operating profitability. It is equal ...
  5. Discontinued Operations

    A segment of a company's business that has been sold, disposed ...
  6. Adjusted EBITDA

    Adjusted EBITDA is a measure computed for a company that looks ...
Related Articles
  1. Investing

    Revenue Surprise to Upside for WWE

    WWE shares are rising after reporting strong revenue growth for the fourth quarter of 2016.
  2. Investing

    Explaining Non-Operating Income

    Non-operating income is any profit or loss a business generates through activities that are not related to its core operations.
  3. Investing

    A Clear Look At EBITDA

    This measure has its benefits, but it can also present earnings through rose-colored glasses.
  4. Investing

    EBITDA: Challenging The Calculation

    This measure has a bad rap, but it's still a valuable tool when used appropriately.
  5. Investing

    EBITDA

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

    Gross, Operating and Net Profit Margins

    A company’s income statement includes the company’s gross, operating and net profits.
  7. Investing

    Should You Ignore EBITDA?

    EBITDA may get a bad rap in the financial world, but it can actually help investors create an apples-to-apples comparison.
  8. Investing

    Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.
  9. Investing

    Net Operating Income

    Net operating income (NOI) reflects income after operating expenses are deducted, but before income taxes and interest are deducted.
RELATED FAQS
  1. 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 >>
  2. What is the formula for calculating EBITDA?

    Learn about EBITDA and how companies can manipulate this calculation to look more profitable. Read Answer >>
  3. What is the difference between operating margin and EBITDA

    Understand the key differences between, and purposes of, two measures of profitability that companies use: operating profit ... Read Answer >>
  4. How do I calculate an EBITDA margin using Excel?

    Learn about the EBITDA profit margin and how to use Microsoft Excel to calculate this profitability metric using data from ... Read Answer >>
  5. What is the difference between EBIT and operating income?

    Read about some of the subtle differences identified by the SEC between earnings before interest and taxes, or EBIT, and ... Read Answer >>
  6. Why is the EBITDA margin considered to be a good indicator of a company's financial ...

    Understand why the EBITDA margin is a good indicator of a company's financial health. Learn why it also has some drawbacks ... Read Answer >>
Hot Definitions
  1. Fintech

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

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

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

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  5. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  6. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
Trading Center