Series 79: Earnings Before Interest, Taxes, Depreciation, Amortization, And Rent (EBITDAR)

Taken from our FINRA Investment Banking Exam

Definition of the term Earnings Before Interest, Taxes, Depreciation, Amortization, And Rent (EBITDAR)...

a variation on EBITDA that may be appropriate in specific, limited circumstances, depending on the industry and the purpose of the analysis. Rent costs, which are deducted from EBITDA, are added back into EBITDAR, to allow earnings comparisons across companies independent of rent. Sometimes, the “r” stands for “restructuring” rather than “rent,” thereby allowing comparisons across companies where some may have experienced a one-time restructuring.

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