EBITA and K-shaped recovery: Difference between pages

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imported>Doug Williamson
(Change to UK spelling of 'amortisation'.)
 
imported>Doug Williamson
(Create page. Source: The Treasurer, December 2020, p30.)
 
Line 1: Line 1:
''Profitability - US.''
''Economics - recession and recovery.''


Earnings Before Interest, Taxes and Amortisation.
A "K" shaped recovery is characterised by a divergence in the recovery - or continued decline - of different sectors of the economy.


A chart of the key economic measures would resemble a letter "K".


EBITA is designed to compare underlying operating performance over time or between businesses, free from any distortions caused by differing financial structures, tax, or the historical cost of fixed assets.


It means the same as 'EBITDA'.
:<span style="color:#4B0082">'''''Recovery forecasts diverge'''''</span>
 
:"The impact of COVID-19 is likely to preoccupy businesses into 2021. 
:As of early October [2020], financial markets appear to be pricing in a recovery.
 
 
:However, contingent on developing and rolling out an effective vaccination programme, economists disagree as to whether the recovery will be shaped as a ‘V’ (fast), ‘L’ (slow), ‘W’ (a second or even third wave of the virus) or – perhaps more insightfully – a ‘K’ (growth for some sectors, decline for others)."
 
 
:''The Treasurer magazine, December 2020, p30 - ACT Technical briefing.''
 




== See also ==
== See also ==
* [[Amortisation]]
* [[COVID-19]]
* [[Capital structure]]
* [[Deflation]]
* [[Depreciation]]
* [[Depression]]
* [[Earnings]]
* [[Double dip]]
* [[EBIT]]
* [[Great Depression]]
* [[EBITDA]]
* [[Great Recession]]
* [[EBITDA multiple]]
* [[Gross domestic product]]
* [[EBITDAR]]
* [[Inflation]]
* [[Free cash flow]]
* [[L-shaped recovery]]
* [[Gross profit]]
* [[Recession]]
* [[Interest]]
* [[Recovery]]
* [[Multiples valuation]]
* [[Reflation]]
* [[Net profit]]
* [[Softness]]
* [[PBT]]
* [[Trumponomics]]
* [[Profitability]]
* [[U-shaped recovery]]
* [[V-shaped recovery]]
* [[W-shaped recovery]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Investment]]
[[Category:Financial_products_and_markets]]
[[Category:Long_term_funding]]

Revision as of 18:40, 18 November 2020

Economics - recession and recovery.

A "K" shaped recovery is characterised by a divergence in the recovery - or continued decline - of different sectors of the economy.

A chart of the key economic measures would resemble a letter "K".


Recovery forecasts diverge
"The impact of COVID-19 is likely to preoccupy businesses into 2021.
As of early October [2020], financial markets appear to be pricing in a recovery.


However, contingent on developing and rolling out an effective vaccination programme, economists disagree as to whether the recovery will be shaped as a ‘V’ (fast), ‘L’ (slow), ‘W’ (a second or even third wave of the virus) or – perhaps more insightfully – a ‘K’ (growth for some sectors, decline for others)."


The Treasurer magazine, December 2020, p30 - ACT Technical briefing.


See also