How does owner distribution affect EBITDA? For example, if my net income is 20 M, and then 4 M is allocated to distributions to owners, is the company still a 20 M in EBITDA company?
Md Ariful Islam
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এমবিএ(মার্কেটিং)
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Dr. Md Rushad Rahman
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পিজিটি(মেডিসিন)
Yes. Cash distributions as in partnerships and S Corps do not impact earnings. Theoretically, the business is distributing earnings already taxed in the form of cash.
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