What are examples of non-recurring charges we need to add back to a company’s EBIT / EBITDA when looking at its financial statements?

• Restructuring Charges
• Goodwill Impairment
• Asset Write-Downs
• Bad Debt Expenses
• Legal Expenses
• Disaster Expenses
• Change in Accounting Procedures

Note that to be an “add-back” or “non-recurring” charge for EBITDA / EBIT purposes, it needs to affect Operating Income on the Income Statement. So if you have one of these charges “below the line” then you do not add it back for the EBITDA / EBIT calculation.

Also note that you do add back Depreciation, Amortization, and sometimes Stock-Based Compensation for EBITDA / EBIT, but that these are not “non-recurring charges” because all companies have them every year – these are just non-cash charges.