The net benefits of a corporation's operation are called earnings. These are also the amount on which corporate tax is due. Several more specific terms are used as EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation, and amortisation) for an analysis of specific aspects of corporate operations. Apart from earnings, alternative terms like income and profit are used. Depending on their context and the objectives, these terms have a variety of definitions. Like EBITDA is a measure of a company's profitability of the operating business only. So it is used to calculate or analyse a firm's profit before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base. EBITDA is derived by subtracting from revenues all costs of the operating business. However, there is no decline in asset value, cost of borrowing, lease expenses, and obligations to governments. EBITDA is not considered part of the Generally Accepted Accounting Principles (GAAP) by the Security Exchange Commission and it is shown on an income statement. EBITDA margin refers to EBITDA divided by total revenue. Another acronym used for earnings is profit after tax or net profit or profit available for equity shareholders, commonly known as PAT. This can be termed as the net profit available for the shareholders after paying all the expenses and taxes by the business unit. Following this, the tax is calculated on the available profit and after deducting the taxation amount, the business derives its net profit or profit after tax (PAT).Market Cues More