EBITDA bridge

A waterfall showing how earnings before interest, taxes, depreciation and amortization (EBITDA) moved between two periods, split into the drivers that moved it.

EBITDA bridge in round numbers

Hypothetical: annual EBITDA rises from US$50m to US$60m on a consistent definition and reporting basis, a US$10m increase. A bridge can separate volume, pricing, mix, costs, currency and acquisitions. If quantified, the net drivers must sum to US$10m; the categories alone do not assign amounts.

Possible earnings drivers; no amounts assigned
  • volume
  • price and mix
  • cost
  • currency
  • acquisitions

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