Income from continuing operations versus EBITDA

Revenue
less COGS
-----------
Gross Profit
less Operating Expenses
-SGA
-R&D
-Depreciation & Amortization
-Impairment, Investments & Write Downs
-Goodwill amortization
-----------
less or add interest
-----------
PBT
less tax
-----------
Operating Income or Income from continuing operations
less or add extraordinaries
-----------
Net Income


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EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization

EBITDA measures operating cash generated before:

• non-operating interest,
• taxes and
• noncash depreciation and amortization.