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Smart Money

Glossary

What is EBITDA?

EBITDA is earnings before interest, tax, depreciation and amortisation: a rough measure of the cash profit of operations.

Because it ignores financing, tax and non-cash depreciation, EBITDA lets you compare the operating strength of companies with different debt levels and asset ages. It is not the same as cash flow: it leaves out working capital and capital spending.

Formula

EBITDA = operating profit + depreciation + amortisation

EBITDA on the Pakistan Stock Exchange

EBITDA of the largest PSX companies
Largest companiesEBITDA
OGDC Oil & Gas Development Company Limited Rs 227.2 bn
FFC Fauji Fertilizer Company Limited Rs 109.7 bn
MARI Mari Energies Limited Rs 100.8 bn
PPL Pakistan Petroleum Limited Rs 166.1 bn
LUCK Lucky Cement Limited Rs 126.3 bn