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EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization. An approximate measure of a company's operating cash flow based on data from the company's income statement. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, and amortization. The formula is: EBITDA = Revenue -- Expenses (excluding interest, taxes, depreciation and amortization)
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Learn more about this term
Usage Example
Many companies use EBITDA to compare profitability among their competitors and other companies within their industry since it eliminates the effects of accounting and financing decisions.
EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization. An approximate measure of a company's operating cash flow based on data from the company's income statement. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, and amortization. The formula is: EBITDA = Revenue -- Expenses (excluding interest, taxes, depreciation and amortization)
...
Learn more about this term
Usage Example
Many companies use EBITDA to compare profitability among their competitors and other companies within their industry since it eliminates the effects of accounting and financing decisions.
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