What is Add-back?
An adjustment that increases (or decreases) reported EBITDA toward a normalized level, such as removing a one-time cost or normalizing above-market owner compensation.
Where you will use it: this term comes up in the Applied AI for Finance and Accounting course, and the full course glossary collects every term in one place.
Related terms
From the free Applied AI for Finance and Accounting course by Devon Coombs, CPA, MBA.