EBITDA stands for earnings before interest, taxes and depreciation. EBITDA is a measure of the company’s operating performance. This help’s understand the profits generated by the company via its operations.

In Navya’s case EBITDA is calculated as gross profit minus operating costs. The amount of EBITDA is Rs. 11,27,000 (12,50,000 – 1,23,000).  

Companies with higher EBITDA in relation to their sales are better than companies with lower EBITDA in relation to sales.