EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric that helps investors assess a company's cash flow from operations by excluding non-cash expenses such as interest, depreciation, amortization, and taxes. This allows for a clearer understanding of a company's operational profitability. EBITDA is often used as a valuation tool, as it gives a more accurate picture of a company's profitability without the influence of financial and accounting decisions. It is similar to operating income, also known as EBIT. Common ways to calculate EBITDA include: 1. EBITDA = Net Income + Taxes + Interest + Depreciation + Amortization. 2. EBITDA = Operating Income + Depreciation & Amortization
Related Terms
Government Bonds
Government bonds are debt instruments issued by central banks to fund operations, offering various types:...
Listing Date
The listing date is the day a company's shares become available for trading on a...
Cash Ratio
The cash ratio is a liquidity ratio that measures a company’s ability to pay off...
Compounded Annual Growth Rate (CAGR)
The Compound Annual Growth Rate (CAGR) indicates the average annual return an investment generates over...
Beta Coefficient
The Beta coefficient measures a stock’s volatility relative to the market, aiding investors in assessing...
Dividend Per Share
Dividend per share (DPS) measures the dividend amount distributed per share, calculated as DPS =...
