- Hobologist
- May 4, 2007
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We'll have one entire section labelled "for degenerates"
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Technically don't you need a beginning and ending balance sheet?
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Feb 18, 2011 03:29
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May 6, 2024 22:38
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- Hobologist
- May 4, 2007
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We'll have one entire section labelled "for degenerates"
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Its Miller Time posted:
I don't work for a big bank and have no idea about that dynamic. I get PMs. I have a question for everyone:
In the course of arguing over the labor lockout in the NFL over in TFF, I found a Forbes report showing Forbes' estimates were for high positive EBITDA's for almost all NFL teams. Someone challenged me, saying because it's impossible to estimate depreciation, there's no way Forbes could make any close estimates of a private company's EBITDA. I replied this is exactly why depreciation is one of the items excluded in EBITDA. He replied you need to estimate depreciation because you calculate EBITDA by taking EBIT and adding DA back. I replied this was a useless route seeing as the teams don't publish their financials and the only way Forbes could be estimating this is a top down analysis of revenues minus expenses that aren't ITDA.
Who's right.
The correct measure of how much money you can take out of a business entity over a given period is EBITDA - maintenace Capex, which is the amount of capital investment necessary for the business to maintain its current level of operations, as opposed to expansionary business plans. So whether or not you know EBDA, you're still missing a piece of a puzzle.
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Mar 24, 2011 23:18
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Feb 18, 2011 03:29
