EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a financial metric that shows a company's profitability from core operations, excluding expenses related to financing (interest), government taxes, and accounting practices like depreciation and amortization. Essentially, EBITDA provides a clearer picture of how well a business is performing operationally, by focusing on earnings generated from its main activities. It's useful for comparing companies within the same industry and assessing operational efficiency without the influence of financial and accounting choices.