Summary
EBITDA Growth measures the percentage increase or decrease in EBITDA compared with a previous period. It focuses on growth in operating earnings before interest, taxes, depreciation, and amortisation.
This metric can help investors understand whether operating earnings are improving before certain accounting and financing effects.
Why it matters
EBITDA Growth can be useful when comparing companies with different financing structures or asset bases. It helps investors assess whether operating performance is strengthening over time.
It is commonly used in valuation, leverage, and credit analysis.
How it is calculated
EBITDA Growth = Current EBITDA − Previous EBITDA ÷ Previous EBITDA × 100
How to read it
Positive EBITDA Growth means EBITDA increased compared with the previous period. Negative EBITDA Growth means EBITDA declined.
Investors should review EBITDA growth together with cash flow, margins, debt, and net income.
When it may not be available
EBITDA Growth may not be shown for certain financial companies or when prior EBITDA data is unavailable.