EBITDAR
Business & Finance abbreviation · Accounting
| Stands for | Earnings before interest, taxes, depreciation, amortization and rent (or restructuring) |
|---|---|
| Categories | Business & Finance |
EBITDAR stands for Earnings before interest, taxes, depreciation, amortization and rent (or restructuring), an accounting abbreviation.
Variant of EBITDA that also adds back rent or lease costs, used to compare companies that own their assets with those that lease them, especially airlines, retailers, hotels, restaurants and casinos. Some companies use the R for restructuring costs instead.
Example: Analysts compare the two airlines on EBITDAR because one leases most of its fleet and the other owns it.
Usage notes
Under IFRS 16, effective 2019, lease costs are split into depreciation and interest, which reduces the need for EBITDAR in IFRS reporting; under US GAAP operating lease cost remains a single expense. The measure remains common in hospitality and senior living and in lease-adjusted leverage ratios used by rating agencies.
Related abbreviations
More accounting abbreviations
- D&A – Depreciation and amortization
- Dr – Debit
- DTA – Deferred tax asset
- DTL – Deferred tax liability
- EBIT – Earnings before interest and taxes
- EBITDA – Earnings before interest, taxes, depreciation and amortization
- EBT – Earnings before taxes
- EPS – Earnings per share
- FASB – Financial Accounting Standards Board
- FIFO – First in, first out
- FRS – Financial Reporting Standard
- FV – Fair value