What is ebita?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to measure a company's operating performance and profitability before taking into account interest, taxes, depreciation, and amortization expenses. EBITDA is often used by investors, analysts, and lenders to assess a company's ability to generate cash flow from its core operations.

EBITDA is calculated by adding back interest, taxes, depreciation, and amortization to a company's net income. It provides a more accurate depiction of a company's operating performance by removing non-operating expenses and accounting practices that may distort the true profitability of the business.

While EBITDA can be a useful measure of a company's operational efficiency and financial health, it is important to note that it does not reflect the full picture of a company's financial performance. It is often used in conjunction with other financial metrics and should not be the sole determinant of a company's value or investment potential.