EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization. It is a measure of a company's operating profitability, and is often used in the financial industry to determine the value of a company.
EBITDA is calculated by taking a company's earnings before interest, taxes, depreciation and amortization, and adding back interest, taxes, depreciation and amortization.
EBITDA is a great metric to use when determining the value of a company, because it is a measure of the company's ability to generate profit.
It can be difficult to calculate EBITDA directly inside of Xero; that's where Causal comes in.
Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your EBITDA.
Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.
In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like EBITDA. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.
When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.
Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like EBITDA.