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
EBITDA, or is an acronym for earnings before interest, taxes, depreciation, and amortization. As its name suggests, it is created by considering a company's earnings before interest payments, tax, depreciation, and amortization are subtracted for any final accounting of its income and expenses. The EBITDA of a company gives an indication of the current operational profitability of the business. Although EBITDA is not a financial metric recognized in generally accepted accounting principles, it is widely used when assessing the performance of companies. It is intended to allow a comparison of profitability between different companies, by canceling the effects of interest payments from different forms of financing, political jurisdictions, collections of assets, and different takeover histories. A negative EBITDA indicates that a business has fundamental problems with profitability. A positive EBITDA, on the other hand, does not necessarily mean that the business generates cash. This is because EBITDA ignores changes in Working Capital, capital expenditures, taxes, and interest.
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