EBITDAR

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The EBITDAR is an economic indicator that an indication of the operating result makes a company.

definition

EBITDAR is the abbreviation for English: earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs . This means “ earnings before interest, taxes, depreciation on property, plant and equipment and depreciation on intangible assets and rents or restructuring costs ”. It is therefore a description of the operational performance before capital expenditure (operational profit). It is a further development of the consideration of an adjusted EBITDA for the assessment of success.

The sustainable EBITDAR includes the operating result that does not include the expenses required for the fixed assets used (rent, interest and depreciation) and is also adjusted for extraordinary and out-of-period expenses and income.

application

EBITDAR is more important for real estate investment firms, hotels, restaurants, hospitals and nursing homes with leasing contracts for their properties or when the buildings are not owned and rented. Since rent is also a cost of capital, it is to be equated with the "normal" interest for debt and equity.

It is used, among other things, as a key performance indicator in operational controlling , in company valuation , in assessing the creditworthiness of companies in certain industries. Because of their limited informative value, other key figures are often taken into account.

EBITDAR can be useful if two companies in the same industry with different structures of their assets are to be compared - for example when considering two nursing home companies: one company rents its nursing homes and the other owns its houses and therefore does not pay rent, but has instead, capital expenditures that are not necessarily in the same order of magnitude as depreciation. By looking at EBITDAR, one can compare the efficiency of operational processes regardless of the structure of their assets.

The profit size is not regulated by the GAAP accounting standard.

EBITDAR margin

The EBITDA margin (English: EBITDAR margin ) is the ratio of EBITDAR to sales (EBITDAR divided by sales). Whether the EBITDAR margin makes a meaningful statement is controversial and also depends very much on the type of business.

Individual evidence

  1. http://www.imcog.info/wp-content/uploads/2016/09/fw_9-16_Kennzahlenset-DVKC-BM-CH-AW.pdf
  2. http://www.investopedia.com/terms/e/ebitdar.asp
  3. http://www.wikifx.info/ge/das-result-vor-zinsen-steuern-verschreiben-und-reststrukturierungskosten-oder-miete-ebitdar/
  4. ^ Lit .: Jürgen Klauber, Max Geraedts, Jörg Friedrich, Jürgen Wasem: Krankenhaus-Report 2015, page 245, ISBN 3794530918