Amortisation is another kind of Depreciation. All these other items reduce the final profit. Some companies, such as supermarkets, like to show EBITDAR where the “R” is rent. Sainsburys, who own less property and so pay more rent than Tescos, like to compare EBITDAR because it makes them look better. EBIT is profit after D&A but Before Interest and Tax.
EBITDA is the cash profit and actually stands for Earnings Before Interest Tax Depreciation and Amortisation (“D&A”).
Conceptually we have a reasonable understanding of inflation. As an economic term, inflation represents the general price rise of goods and services over a predetermined time.
Usually, your bank would pay interest on your savings accounts. Negative interest rates turn this around and mean customers have to pay banks to hold their savings.
You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt.
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