EBITDA, EBIT, operating result: the differences in Belgian accounting
EBITDA, EBIT and operating result are often conflated. In Belgian accounting, only 'operating result' (rubric 9901) is an official line item — EBIT and EBITDA must be rebuilt. Here is how to compute them correctly from annual accounts filed at the NBB.
In brief
In Belgian accounting, the only officially published indicator in the annual accounts is the "operating result" (rubric 9901). EBIT and EBITDA, both Anglo-Saxon vocabulary, are not standardised rubrics of the Belgian chart of accounts (PCMN / MAR). They must be rebuilt by adding several rubrics. Conflating the three is a leading source of analyst disagreement.
The three indicators in one line
| Indicator | Economic definition | Source in Belgian accounting |
|---|---|---|
| EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization | To be rebuilt: operating result + depreciation + operating provisions |
| EBIT | Earnings Before Interest and Taxes | To be rebuilt: operating result ± non-recurring items |
| Operating result | Result of the ordinary activity before financial items and taxes | Rubric 9901 — published as is |
The Belgian operating result in detail
The operating result (XBRL code 9901) is the income statement balance after:
- Sales (rubric 70)
- Other operating income (74)
- Minus: purchases (60), services and various goods (61), wages (62), depreciation and impairment (630, 631/4), provisions (635/7), other operating expenses (640/8)
It does not include:
- Financial income and expenses (rubrics 75 and 65)
- Exceptional income and expenses (76 and 66, removed in 2016 but still visible in older accounts)
- Income tax (67/77)
So broadly speaking, the result before financial expenses and before tax. Conceptually very close to EBIT — but not identical, which creates the confusion.
EBIT = operating result + adjustments
In its strict sense, EBIT (Earnings Before Interest and Taxes) includes all non-financial, non-fiscal results, including exceptional or non-recurring items. By convention:
1 2 3 4
EBIT = Result for the period (9904)
+ Financial expenses (65)
− Financial income (75)
+ Income tax (67/77)Or equivalently:
1
EBIT = Operating result (9901) ± non-recurring itemsFor a classic Belgian SME with no exceptional items, EBIT ≈ Operating result. The gap appears:
- When a company has booked a capital gain on disposal (sale of fixed asset, sale of a business)
- When a company has booked a provision for litigation or an exceptional impairment
- When a company has received a capital subsidy
EBITDA = EBIT + depreciation + provisions
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) adds back to EBIT the non-cash expenses of asset wear:
1 2
EBITDA = EBIT + Depreciation and impairment (630, 631/4)
+ Operating provisions (635/7)For a Belgian SME:
1
EBITDA ≈ Operating result (9901) + Depreciation (630)This is the simplified formula used in most quick-scoring computations, including the Belgian Conan-Holder (which uses the EBE, the French near-equivalent of EBITDA).
Worked example
Take the Brussels SRL from the other articles:
| Rubric | Code | Amount (€) |
|---|---|---|
| Sales | 70 | 2,100,000 |
| Purchases | 60 | 950,000 |
| Services and various goods | 61 | 280,000 |
| Wages | 62 | 850,000 |
| Depreciation | 630 | 80,000 |
| Operating provisions | 635/7 | 5,000 |
| Other operating expenses | 640/8 | 10,000 |
| Operating result | 9901 | 95,000 |
| Financial expenses | 65 | 18,000 |
| Financial income | 75 | 2,000 |
| Income tax | 67/77 | 22,000 |
| Result for the period | 9904 | 57,000 |
Computation of the three indicators:
- Operating result = 95,000 € (read directly)
- EBIT ≈ Operating result = 95,000 € (no exceptional)
- EBITDA = 95,000 + 80,000 + 5,000 = 180,000 €
Bottom-up check:
1 2
EBIT = 57,000 (period) + 22,000 (tax) + 18,000 (financial exp) − 2,000 (financial inc)
= 95,000 ✓When to use which?
| Use | Preferred indicator | Why |
|---|---|---|
| Valuation (EV/EBITDA multiple) | EBITDA | Neutralises depreciation policy, comparable across countries |
| SME operating profitability | Operating result | Published, auditable, unambiguous |
| Sector benchmarking | EBIT or operating result | More stable than net result (which depends on tax) |
| Interest coverage | EBIT | EBIT / financial expenses = coverage ratio |
| Self-financing capacity (cash) | EBITDA | Approximates operating cash flow |
| Year-end review with accountant | Operating result | Official rubric, traceable to the chart of accounts |
Classic pitfalls and confusions
Tools and automation
The Company Belgium API exposes in its financial-analysis endpoint:
- The operating result (9901) as published
- The automatically rebuilt EBITDA from rubrics 9901 + 630 + 635/7
- Derived ratios: EBITDA margin = EBITDA / turnover, net debt / EBITDA, etc.
The computation is transparent: the response includes the components used, so the result is manually reproducible. For broader financial analysis, see our article on financial analysis via NBB annual accounts and the dashboard of 12 financial ratios for assessing a Belgian SME. EBITDA is also at the heart of Altman's Z''-Score via the X3 ratio (EBIT / total assets).
Frequently asked questions
Is EBITDA published in Belgian annual accounts?
No. The Belgian chart of accounts (PCMN/MAR) does not contain an EBITDA rubric. Only operating result (rubric 9901) is officially published. EBITDA must be rebuilt by adding operating result, depreciation and operating provisions.
What is the difference between EBE and EBITDA in Belgium?
In practice, on a classic Belgian SME, EBE and EBITDA produce near-identical amounts. The EBE (Excédent Brut d'Exploitation, French terminology) traditionally excludes 'other operating income and expenses' while EBITDA, in its broad definition, may include them. The difference is marginal and most tools, including the Company Belgium API, use both terms interchangeably for scoring.
Can a reliable EBITDA be computed from a micro schema?
With difficulty. The micro schema does not always isolate depreciation and operating provisions, making EBITDA reconstruction imprecise. For these companies, best practice is to stick with operating result (when available) or result for the period as a rough proxy.
Why is EBIT preferred to EBITDA for the interest coverage ratio?
Because it reflects the company's real capacity to service financial charges from its operating result after accounting for asset wear. EBITDA, by adding depreciation back, gives a more optimistic but less prudent picture. Belgian banks typically use EBIT / financial expenses as a covenant, not EBITDA.
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