Which of the following would NOT be added back to EBITDA as a non-recurring charge?

• A. Restructuring charges
• B. Goodwill impairment
• C. Interest expense
• D. Disaster expenses

Answer: (C)

EBITDA is meant to reflect operating performance by removing financing costs and non-operating items. When analysts adjust EBITDA for recurring assessments, they add back items that are non-recurring but affect operating results, so the ongoing profitability looks clearer. Restructuring charges, goodwill impairment, and disaster-related expenses are classic non-recurring operating costs that distort current operating performance, so they’re added back to arrive at a cleaner measure. Interest expense, on the other hand, is a financing cost and is not part of EBITDA to begin with, so it isn’t added back. In fact, EBITDA already excludes interest, taxes, depreciation, and amortization, making interest expense the one that would not be adjusted back.