Operating Income Before Depreciation and Amortization - OIBDA
A non-GAAP measure of financial performance used by companies to show profitability in continuing business activities excluding the effects of capitalization and tax structure.
OIBDA is calculated as operating income before depreciation, amortization, tax, and interest. Sometimes OIBDA is also considered to not include items such as: changes in accounting principles that are not indicative of core operating results, income from discontinued operations, and earnings (losses) of subsidiaries.
Investopedia Commentary
This measure is gaining more and more use as companies are starting to move away from the more recognized performance indicator earnings before interest, taxes, depreciation, and amortization (EBITDA). These two measures are similar except in terms of the income number they start with. In OIBDA, the calculation is started with GAAP net operating income. In EBITDA, the calculation is started with GAAP net income. One advantage of OIBDA is that the net income used in EBITDA includes non-operating income which really isn't relevant since it won't continue in the future.
Related Links
Advanced Financial Statement Analysis
Zooming in on Net Operating Income
EBITDA: The Good, The Bad, And The Ugly
Appreciating Depreciation
See also: Amortization, Depreciation, Earnings, Earnings Before Interest, Taxes, Depreciation, and Amortization - EBITDA, Generally Accepted Accounting Principles - GAAP, Net Income, Operating Income