Resolved: SG&A not deducted

in Accounting and Financial Statement Analysis / Types of Costs

In the EBITDA formula you deducted COGS from total revenue but not SG&A. Why so ?

1 answers ( 1 marked as helpful)

Antoniya Baltova

Instructor

Posted on:

13 Aug 2024

Hi Kritika,

in this specific example, there are no SG&A expenses. You are right, though, that if there were, they should be deducted from Gross Profit to get EBITDA.

I hope this makes sense.

Best,

365 Team

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