Definitions for ebitda
This page provides all possible meanings and translations of the word ebitda
EBITDA, Earnings Before Interest Taxes Depreciation and Amortization(noun)
income before interest and taxes and depreciation and amortization have been subtracted; an indicator of a company's profitability that is watched by investors (especially in leveraged buyouts)
Earnings before interest, taxes, depreciation, and amortization
A company's earnings before interest, taxes, depreciation, and amortization is an accounting measure calculated using a company's net earnings, before interest expenses, taxes, depreciation and amortization are subtracted, as a proxy for a company's current operationing profitability, i.e., how much profit it makes with its present assets and its operations on the products it produces and sells, as well as providing a proxy for cash flow. Although EBITDA is not a financial measure recognized in generally accepted accounting principles, it is widely used in many areas of finance when assessing the performance of a company, such as securities analysis. It is intended to allow a comparison of profitability between different companies, by discounting the effects of interest payments from different forms of financing, political jurisdictions, collections of assets, and different takeover histories. EBITDA is a financial measurement of cash flow from operations that is widely used in Mergers and Acquisitions of small businesses and businesses in the middle market.
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