Comment on Alphabet Announces Second Quarter 2021 ResultsparentComments−Vaslo5yThis gets removed from EBITDA though, to avoid that accounting magic−tyingq5ySort of. Depreciation is added back in, but at a lower percentage/year. 25% instead of 33%, since it's 4 years instead of 3 now.−somebodythere5yEBITDA is earnings before interest, taxes, depreciation, and amortization−tyingq5yYes. Meaning depreciation is added back in. But a different amount is added back in when you shift from a 3 year to a 4 year depreciation.
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This gets removed from EBITDA though, to avoid that accounting magic
Sort of. Depreciation is added back in, but at a lower percentage/year. 25% instead of 33%, since it's 4 years instead of 3 now.
EBITDA is earnings before interest, taxes, depreciation, and amortization
Yes. Meaning depreciation is added back in. But a different amount is added back in when you shift from a 3 year to a 4 year depreciation.