💡Steps to clean EBITDA 💡

🔍 Gather financial statements: Collect the company's financial documents, such as income statements and balance sheets.

📌 Identify non-recurring items: Identify expenses or gains that are unlikely to occur again in the future.

🔄 Adjust for non-recurring items: Exclude those one-time items from the EBITDA calculation to focus on recurring earnings.

📊 Analyze one-time events: Evaluate exceptional events and decide if they should be included or excluded from EBITDA.

📈 Normalize for accounting changes: Adjust the EBITDA figure to ensure consistency in accounting practices over time.

🚫 Review non-operating items: Assess non-operating income or expenses that are not directly related to core operations.

💯 Verify consistency and accuracy: Double-check the adjustments made to ensure they are accurate and in line with accounting principles.

💵 Exclude non-cash items: Remove non-cash expenses or income from the EBITDA calculation.

🔁 Adjust for non-operating income/expenses: Account for significant non-operating income or expenses that can impact EBITDA.

🔀 Evaluate related party transactions: Assess transactions with related parties for fairness and adjust EBITDA if necessary.

🌐 Consider seasonality or cyclical trends: Adjust EBITDA to account for regular fluctuations in revenue or expenses.

📊 Analyze industry benchmarks: Compare the company's EBITDA performance to industry standards or competitors.

💰 Evaluate capital expenditure requirements: Consider the impact of capital investments on EBITDA and adjust if needed.

🔍 Communicate adjustments transparently: Clearly disclose the reasons for adjustments made to ensure transparency in reporting.