What is EBITDARD and why is it a helpful measure to use?

EBITDARD is the acronym for Earnings Before Interest, Taxes, Depreciation, Amortization, Rent and Donations.
EBITDARD is an approximate measure of a company’s operating cash flow based on data from the company’s income statement.  It is calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, amortization, rent and donations.  EBITDA is the most common calculation however rent and donations have also been excluded from the Astute BI calculation as these are venue specific expense items. 

The EBITDARD earnings measure is of particular interest in cases where companies have large amounts of fixed assets that are subject to heavy depreciation charges (such as a company that has purchased a brand or a company that has recently made a large acquisition).  Since the distortion caused by accounting and financing effects on company earnings does not factor into EBITARD, it is a good way of comparing companies within and across industries. Sometimes EBITDARD is also called operational cash flow.

EBITDARD is now the standard measure of licensed venue operational efficiency.

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