EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a financial metric used to assess a company’s operational performance by focusing on its earnings from core business activities. By excluding interest (which varies by financing structure), taxes (which differ by region), and non-cash expenses like depreciation and amortization, EBITDA provides a clearer picture of profitability and cash flow. Investors and analysts use EBITDA to compare companies in the same industry, helping them gauge efficiency and operational health without the influence of financial and accounting decisions.