Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs (EBITDAR) is a non-GAAP

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards...

 metric that can be used to evaluate a company's financial Performance.

EBITDAR = Revenue - Expenses (excluding tax, interest, depreciation, amortization and restructuring or rent costs)

Depending on the company and the goal of the user, the indicator can include either restructuring costs or rent costs, but usually not both. The EBITDAR indicator expands on EBITDA

EBITDA

EBITDA is an acronym for earnings before interest, taxes, depreciation, and amortization. It is a non-GAAP metric that is measured exactly as stated. All interest, tax, depreciation and amortization entries in the income statement are reversed out from the bottom-line net income...

 by adding an additional excluded item to give a better indication of the company's financial performance.

EBITDAR, when evaluating the impact of rent expense is often used by retail businesses and airlines. Typically, in such an analysis the rent expense will be capitalized and added to the net debt of the company in order to better understand the leverage levels

Leverage (finance)

In finance, leverage is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives. Important examples are:* A public corporation may leverage its equity by borrowing money...

 in the company's capital structure

Capital structure

In finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $20 billion in equity and $80...

.

See also

• Earnings before interest, taxes, depreciation and amortization(EBITDA)
• Revenue
  Revenue
  In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
  
  
• Gross profit
  Gross profit
  In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments...
  
  
• Earnings before interest and taxes
  Earnings before interest and taxes
  In accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...
  
   (EBIT), or operating profit
• Net profit
  Net profit
  Net profit or net revenue is a measure of the profitability of a venture after accounting for all costs. In a survey of nearly 200 senior marketing managers, 91 percent responded that they found the "net profit" metric very useful...
  
   or Net income
  Net income
  Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...
  
  
• EV/EBITDA
  EV/EBITDA
  EV/EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E ratio to determine the fair market value of a company.An advantage of this multiple is that it is capital...
  
  
• P/E ratio
  P/E ratio
  The P/E ratio of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share...
  
  
• SG&A
  SG&A
  SG&A is an acronym used in accounting to refer to Selling, General and Administrative Expenses, which is a major non-production costs presented in an Income statement....