Course · 20 min read

Understanding the P&L Statement (Part 2)

Karthik Rangappa, Zerodha Varsity · zerodha.com Free Beginner India

The second half of Varsity's P&L walkthrough, covering finance costs, depreciation, tax and profit after tax, with reader questions on EBITDA answered in the comments.

  • Profit before tax less tax gives profit after tax (PAT).
  • Depreciation and amortisation are non-cash charges for using up assets.
  • EBITDA shows profitability at the operating level, before interest, tax and depreciation.
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The question it answers

  1. What is EBITDA, and how do I calculate it?

Read with it

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