What is ebitda?

[michaelowen]

I’ve come across this term in financial reports. What is EBITDA, and why do companies use it instead of net income?

 

[robert]

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a metric that indicates a company’s operating performance by stripping away financial and accounting influences. It is used by investors to make comparisons between companies.