Definition
EBITDA is a financial metric that measures a company�s profitability before accounting for financing and non-cash expenses: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
Related Services
Financial reporting, business valuation, and M&A advisory help businesses analyze EBITDA.
Problem and Application
EBITDA helps compare profitability across companies, but it can overstate cash flow if not adjusted properly.
Conclusion
EBITDA is useful for performance evaluation but should be analyzed alongside cash flow metrics for a complete financial picture.
