EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization
aka EBITDA, Earnings Before Interest Taxes Depreciation and Amortization
The EBITDA metric is a variation of operating income (EBIT) that excludes non-operating expenses and certain non-cash expenses. The purpose of these deductions is to remove the factors that business owners have discretion over, such as debt financing, capital structure, methods of depreciation, and taxes (to some extent). It can be used to showcase a firm’s financial performance without accounting for its capital structure. [1] [2]
[1] Retrieved May 21, 2021, from https://www.investopedia.com/terms/e/ebitda.asp
[2] Corporate Finance Institute. Retrieved May 21, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-ebitda/
[3] Retrieved May 21, 2021, from https://www.investopedia.com/ask/answers/031815/what-formula-calculating-ebitda.asp