EBITDA
AccountingEarnings before interest, tax, depreciation and amortisation.
In plain terms
Munger’s test: try reading it as "earnings before the bad stuff" and see if the argument holds.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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EBITDA per tonne
Fundamental analysisOperating profit divided by tonnes sold — the headline profit measure for cement and steel.
In plain terms
Because the product is uniform, per-tonne figures compare companies of any size. A small cost change moves it sharply.
Adjusted EBITDA
AccountingEBITDA with further company-chosen exclusions such as one-offs, restructuring or share-based payment.
In plain terms
Each adjustment may be defensible; the pattern rarely is. Reconcile any self-defined measure back to an audited number.
EV/EBITDA
Fundamental analysisEnterprise value divided by earnings before interest, tax, depreciation and amortisation.
In plain terms
The only common multiple that accounts for debt. Use it whenever leverage differs.
Net debt to EBITDA
AccountingBorrowings minus cash, divided by operating earnings.
In plain terms
Years of earnings needed to repay all debt. It is what rating agencies lead with.
Pre-Ind AS 116 EBITDA
AccountingEBITDA with rent deducted as an operating cost, as before lease accounting changed in 2019.
In plain terms
Ind AS 116 moved rent below EBITDA, inflating it. This version makes retailers’ margins comparable across years.
Cash conversion
AccountingThe share of reported profit or EBITDA that becomes operating cash.
In plain terms
The single most useful cross-check on an income statement, and it needs two numbers you already have open.
EV per tonne
Fundamental analysisEnterprise value divided by installed capacity in tonnes a year.
In plain terms
Compared with the cost of building new capacity and with acquisition prices. It ignores profitability, so pair it with EV/EBITDA.
Ind AS 116
AccountingThe Indian accounting standard requiring operating leases to be recognised on the balance sheet.
In plain terms
It raised reported debt and EBITDA for retailers and airlines overnight, breaking comparisons across the transition year.
Other operating income
AccountingIncome arising from a company’s ordinary operations but not from the sale of its principal goods or services, presented within revenue from operations.
In plain terms
Where scheme receipts, scrap sales and export incentives usually land. Because it is inside revenue it is also inside EBITDA, which is how an operating margin improves without the manufacturing improving.
RoDTEP
Fundamental analysisAlso called: Remission of Duties and Taxes on Exported Products
Remission of Duties and Taxes on Exported Products — a scheme refunding embedded duties and taxes on export value as transferable electronic scrips, notified rate by rate against the customs tariff.
In plain terms
It replaced the earlier MEIS after India’s export incentives were found inconsistent with WTO rules, and it is framed as a remission rather than a subsidy for that reason. It generally sits above EBITDA, so it lifts the operating margin rather than just the tax line.
Trade payables
AccountingAmounts owed to suppliers for goods and services received in the ordinary course of business.
In plain terms
Funding with no interest line, no covenant and no credit rating, and none of it appears in borrowings, net debt to EBITDA or debt-to-equity. It is repayable on demand in the only sense that matters: the supplier can stop supplying.