| EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric that shows a company's profitability from its core operations without factoring in non-operational expenses like interest on debt or tax liabilities. EBITDA provides a clearer view of a company's current performance and cash flow potential by excluding depreciation and amortization. It is commonly used by investors and analysts to compare profitability between companies and industries, especially when they have different capital structures or tax environments. However, EBITDA doesn't reflect cash outflows for capital expenses or debt payments. |
