Journal of Applied Finance & Banking

Ebitda as a Criterion for Assessment of the Banks System: The Case of Deutesche Bank, Generali and Unicredit

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• Abstract

  This work describes and analyzes the validity of some economic indicators about companies or groups of companies that use capital intensive as a factor of production. In particular, the study aims to investigate the way in which services provided to high capital intensity (capital intensive) and then the profit and profitability reached by some groups in banking, finance and insurance, can be evaluated using the Ebitda criterion (Ebitda Earnings before tax, Depretiation and Ammortization) or other economic indicators that will be analyzed during the work. Economic indicators have often an advantage, but they also have critical issues that will be described during the exposure and depth of work. In addition, the analysis of statistical and macro-econometric relative to Ebitda of three comparable groups of intermediaries sector under consideration (Deutesche Bank, Generali and Unicredit) using a sample of 10 periods (from 2000 to 2009), utilizing the Cobb-Douglas production function, and considering the excessive volatility of some data, allows us to obtain a forecast of the increase of the output to vary the amount of input in terms of physical capital and human capital.