How to Understand and Calculate EBITDA
Explanation of EBITDA EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a financial metric used to evaluate a company’s operating performance and profitability. It is often used as an alternate measure of profitability to net income. EBITDA is calculated by taking a company’s earnings and adding back interest, taxes, depreciation, and amortization. These...