Depreciation & Amortization
Non-cash expense allocating the cost of capitalized assets (equipment, capitalized software, intangibles) over their useful life for the period. Below the EBITDA line precisely because EBITDA excludes it; usually small for early-stage software companies. — Finance KPI, I'mBoard-authored (editorial tier).
I'mBoard-authored (editorial tier)
No public third-party standard anchors this KPI yet, so I'mBoard authors and maintains the definition — transparently labeled as editorial tier. See the ontology methodology for the published vs editorial tier system and the back-attribution workstream.
Rogue ID: finance.depreciation_amortization
Type: Currency
Domain: Finance
Definition
Non-cash expense allocating the cost of capitalized assets (equipment, capitalized software, intangibles) over their useful life for the period. Below the EBITDA line precisely because EBITDA excludes it; usually small for early-stage software companies.
Formula
Non-cash depreciation + amortization expense for the period.Why it matters
Bridges EBITDA to net income; non-cash, so it affects accounting profit but not burn.
How to interpret
Typically immaterial for asset-light software companies; flag if it becomes large (capitalized software/assets).
Calculation policy
How an AI agent should compute this KPI from messy company data. Free-text rules consumed at reasoning time — not a deterministic DSL. The most common ways to get this wrong are listed under Common miscomputations.
Inclusion rules
- Non-cash expense allocating the cost of capitalized assets (equipment, capitalized software, intangibles) over their useful life for the period.
- Sits below the EBITDA line precisely because EBITDA excludes it.
Exclusion rules
- Cash capex — that is an investing outflow, not this line.
- Stock-based compensation — a separate non-cash item.
- Operating-lease cash rent (finance.office_facilities), though ROU-asset amortization under ASC 842 may appear here — state the convention.
Required inputs
- Fixed-asset and intangibles register with depreciation schedules and capitalized-software amortization.
Edge cases
- Typically immaterial for asset-light software companies; large only with capitalized software, equipment, or acquired intangibles.
Validation checks
- Non-cash — it affects accounting profit and the EBITDA-to-net-income bridge, NOT burn or operating outflow.
- Reconcile to the fixed-asset rollforward.
Common miscomputations
- Including D&A in burn or operating outflow — it is non-cash.
- Confusing cash capex with the D&A expense.
Related KPIs
finance.ebitdafinance.net_income
Source
I'mBoard editorial — authored and maintained by I'mBoard, first published 2026-04-01. No third-party standard is cited for this KPI; when one emerges, the definition is back-attributed and promoted to the published tier (a minor version bump). Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.
Stage relevance
| Company stage | Priority |
|---|---|
| Series A | Recommended |
| Series B | Recommended |
| Series C+ | Recommended |
| Public | Recommended |
Suggested for stages: Series A, Series B, Series C+, Public.
Default owning functions
- Finance
Machine-readable
- This KPI as JSON:
/api/ontology/finance/depreciation_amortization.json - All Finance KPIs:
/api/ontology/finance.json - Full catalog:
/api/ontology/index.json
Customer Support & Delivery
Direct cost of supporting and serving customers that is part of cost-of-revenue (front-line support, delivery operations tied to the product). Distinct from the Customer Success OpEx section, which covers retention/expansion-oriented account management. — Finance KPI, I'mBoard-authored (editorial tier).
EBITDA
Earnings before interest, taxes, depreciation, and amortization for the period — gross profit minus total operating expense. The core operating result for a startup P&L: the clean view of operating profit or loss before non-operating and non-cash effects. — Finance KPI, I'mBoard-authored (editorial tier).