For the previous five-year period, Galhadi Telecommunications Limited has had EBIT of $28.6 million, $28 million, $33.2 million, $34.1 million, $33.8 million, respectively, and a corresponding EBITDA of $15.5 million, $15.4 million, $15.5 million, $17.5 million, and $17 million. Which of the following statements is the best conclusion to draw about year 3?

Question

Quizplus · Accepted Answer

In year 3, the EBIT was $33.2 million with an EBITDA of $15.5 million, indicating a large difference between the two figures. This suggests significant depreciation and amortization expenses, as EBITDA excludes these costs from EBIT.

For the Previous Five-Year Period, Galhadi Telecommunications Limited Has Had