EBITDA
Earnings before interest, taxes, depreciation and amortization, a pre-financing operating measure.
Plain languagePractical exampleConnected reading
01
What is it?
Earnings before interest, taxes, depreciation and amortization, a pre-financing operating measure.
02
Why does it matter?
It helps compare operating profitability and debt-carrying capacity.
03
How should it be read?
Check adjustments, accounting policy and conversion into cash flow.
04
Common mistake
Treating EBITDA as cash flow or net income.
A simple example
Operating cash may lag EBITDA growth when working-capital needs rise.