The Application Research Of EBITDA In The Enterprise

“EBITDA” is called as earnings before interest,tax,depreciation and amortisation of the profits.Since it was widely used foreign capital market in the 1980 s,as a kind of creative financial indicators,EBITDA index has been widely attention.EBITDA more commonly is used to calculate the enterprise value,the evaluation of enterprise business performance,etc,and it is a kind of comprehensive financial indicators.EBITDA is developed from EBITA and it eliminate the factors such as depreciation and amortization effect on enterprise's comprehensive ability evaluation.For the proportion of fixed assets of higher manufacturing enterprise,EBITDA has more actual applied meaning.In China's current capital market and the management information system of the enterprise,although the application of the traditional financial index such as net profit still has its place,but the study of EBITDA index connotation significance can not be ignored and it is worthwhile to explore its unique application value.Therefore,this article tries to analyze the value of EBITDA and that is the meaning of EBITDA for the Chinese enterprise financial decisions.This article firstly explore the inner meaning of EBITDA indicators and on this basis,we focus on exploring EBITDA the application value of the index in corporate financial decisions.In this paper,we use literature research,case study and comparative research as research methods.And we discusses the connotation of EBITDA,calculation methods,properties,advantages and disadvantages one by one.In paper,industry at the same time will be represented by T enterprises as study case,the combination of theory and business practice experience,business specific data calculation and analysis.Focus on EBITDA index in corporate financial decisions four applications-enterprise value evaluation,performance evaluation,evaluation of enterprise debt paying ability and the enterprise production and management decision-making,in order to confirm EBITDA index in corporate financial decisions can not be ignored in application value.While this article is based on the paper industry as a case study background,but we hope that through the industry application of EBITDA index,EBITDA can be extended to all walks of life to greatly enrich and promote EBITDA index application of practical significance in corporate financial decisions.Four aspects in this paper,the mining of EBITDA indexes of applied research,have certain advantages while in the actual use of enterprise,but there are still shortcomings and we can improve the use of EBITDA in the future in the research field of EBITDA both in theoretical research and practical exploration.