This report provides a case study for exactly how we perform the Revenue to EBITDA Reconciliation for General Motors (GM).
This case study shows the original source data used to perform all of our calculations and adjustments. It allows clients to audit our work and serve as supporting documentation for the backtest dataset.
We provide original values and locations for all data.
Figure 1 shows the detailed reconciliation for General Motors (GM). The specific calculations behind this reconciliation are in this excel file:
Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a common financial metric used to measure the cash operating profits of a business. EBITDA is popular because it is simple to understand and calculate.
Our Adjusted EBITDA removes the unusual gains and losses that distort other measures of EBITDA.
Clients can audit all of the unusual items used in our calculations in the Marked-Up Filings section of each of our Company Valuation models. We are 100% transparent about what goes into our research because we want investors to trust our work and see how much goes into building the best earnings quality and valuation models.
Figure 1 shows the detailed adjustments we make to reconcile General Motors’s (GM) 2018 Revenue to Adjusted EBITDA, along with the location each item was found in its 2018 10-K.
Figure 1: GM Revenue to Adjusted EBITDA Reconciliation – 2018 10-K
Sources: New Constructs, LLC and company filings
For more details on each of the items in Figure 1, along with how you can access our Revenue to Adjusted EBITDA dataset, click here.
This article originally published on March 2, 2020.
Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, style, or theme.