EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric that helps investors assess a company's cash flow from operations by excluding non-cash expenses such as interest, depreciation, amortization, and taxes. This allows for a clearer understanding of a company's operational profitability. EBITDA is often used as a valuation tool, as it gives a more accurate picture of a company's profitability without the influence of financial and accounting decisions. It is similar to operating income, also known as EBIT. Common ways to calculate EBITDA include: 1. EBITDA = Net Income + Taxes + Interest + Depreciation + Amortization. 2. EBITDA = Operating Income + Depreciation & Amortization
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