ZALIS GLOSSARY: earnings-before-interest,-taxes,-depreciation,-depletion,-amortization,-and-exploration-expenses-ebitdax
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
An indicator of a company's financial performance calculated as:
= Revenue - Expenses (excluding tax, interest, depreciation, depletion, amortization, and exploration expenses)
Notes:
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.