EBITDA
A measurement of the cash flow of a company which includes earnings before interest, taxes, depreciation, and amortization.
See Also
Cash flow, EBIT, net income, SDE.
Tips
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. EBITDA is an indicator for gauging a company’s financial performance. It is often used to determine a company’s profitability and to compare the performance of companies with each other. EBITDA does not include the owner’s salary.
Related Resources
EBITDA | Definition, Formula & Example – A Complete Guide
Seller’s Discretionary Earnings (SDE) | Definition & Examples
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