Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), is a non-GAAP metric used to assess a company’s financial performance. In some instances, it serves as a substitute for calculating net income. By including interest and back taxes, EBITDA subtracts costs related to debt.
EBITDA is a more accurate indicator of company performance since it reflects earnings before the impact of accounting and other financial decisions, even though it occasionally can be misleading because it removes the cost of capital investments like property.
EBITDA serves a variety of purposes in the business sector. It contrasts businesses with one another and with industry averages. It can also be applied to calculate the amount of cash flow that will be available to pay down the debt on long-term assets. EBITDA is also used for:
Outsourcing is a way for companies to cut costs and increase their profit margins. Companies that outsource are no longer limited by their physical location, so they can focus on what they do best and outsource the rest creating savings on payroll, facilities, and other costs. A company that’s outsourcing can have a higher EBITDA because of all the savings they’re making from not having to pay salaries or overhead costs.
Staff Boom specializes in customized staffing solutions and consulting for small and medium sized businesses, providing a fully managed process including assisting in the building of the training manuals, complete implementation, hiring, training, and management of the staff abroad. The coherent process will enable you to manage your operation the way that you always have while reaping the benefits of establishing staffing abroad. Talk to one of our sales executives to learn more on how you can increase your EBITDA through outsourcing!