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.

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 the earnings/losses of subsidiaries.

Calculated as:


|||This measure is gaining ground as companies move away from using earnings before interest, taxes, depreciation and amortization (EBITDA). These two measures are similar except in terms of the income numbers they use. In OIBDA, the calculation is started with GAAP net operating income. In EBITDA, the calculation is started with GAAP net income.

Unlike EBITDA, OIBDA does not incorporate non-operating income. This is seen as an advantage for comparison purposes because non-operating income usually doesn't reoccur year after year and its separation from operating income ensures that all income reflects only the income earned from regular operations.