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FREE EBITDA ADJUSTMENT GUIDE

Which earnings adjustments
can you explain and support?

Build a transparent bridge from reported EBITDA to proposed adjusted EBITDA. Include positive and negative adjustments, then keep unsupported items outside the result.

Before you adjust: reconcile reported EBITDA to the financial statements. An adjustment must affect that starting figure, use the same period and not be counted twice. Interest, tax, depreciation and amortisation already excluded from EBITDA must not be added again.

Your EBITDA bridge

Reported annual EBITDA (₹) *

Amount in rupees (₹).

Annual revenue (₹) (optional)

Optional, for a margin on the same annual basis.

Signed amounts: positive adds to EBITDA; negative deducts. Blank adjustment fields mean no proposed adjustment. Tick a row only after reviewing the evidence.

One-off items (optional)

Consider unusual costs as positive adjustments and unusual gains as negative adjustments. Verify they affect the starting EBITDA.

I have support for this amount and checked for double counting.

Owner compensation (optional)

Adjust to a supportable replacement cost. Under-market compensation can require a deduction rather than an add-back.

I have support for this amount and checked for double counting.

Restructuring (optional)

Check whether costs recur and whether the business still needs replacement spending.

I have support for this amount and checked for double counting.

Exceptional legal costs (optional)

Distinguish a specific exceptional matter from normal recurring legal expense.

I have support for this amount and checked for double counting.

Run-rate adjustments (optional)

Separate completed, evidenced changes from projected savings or revenue. Do not treat an aspiration as realised earnings.

I have support for this amount and checked for double counting.

Non-recurring professional fees (optional)

Confirm the service is non-recurring and has not already been included in another adjustment.

I have support for this amount and checked for double counting.

Discontinued activities (optional)

Consider associated revenue, costs and stranded overhead together. A full carve-out or accounting analysis may be needed.

I have support for this amount and checked for double counting.

Your proposed EBITDA bridge

Enter your inputs or try the illustrative example.

How to interpret the result

Proposed adjusted EBITDA = reported EBITDA + supported signed adjustments. Unchecked rows remain excluded, even when an amount is entered. Their displayed total is a net figure; review individual rows because additions and deductions can offset.

The checkbox records your assessment, not independent verification. Repeated restructuring, legal fees or ordinary operating costs should not automatically disappear from earnings. Normalisation may lower EBITDA as well as increase it.

The guide is educational and does not produce an audit opinion, transaction-quality earnings report or lender-approved covenant calculation. Read the EBITDA concept guide · Financial disclaimer.