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Leverage/Gearing: An Overview
Leverage, also known as Gearing, refers to the value of the assets on hand that has been financed using debt (liabilities).
EBIT & EBITDA
EBIT: literally Earnings (net profit) Before (excluding) Interest incurred and Tax (income tax)
EBITDA: literally EBIT, but also excluding Depreciation and Amortisation (Amortization).
IRR & NPV
Accounting students often get confused when they first meet the concepts of Net Present Value (NPV), and it's good friend, Internal Rate of Return (IRR). Here, we provided a non-technical explanation, by showing what we are trying to achieve when using them, and how they function.