What is EBITDA?
The term “EBITDA” stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It is a financial tool often used to measure a company’s cash flow and ability to service its debt. It is a legitimate tool for analyzing lower-rated credits, but less appropriate for higher rated credits. To compute EBITDA, add back interest expense, depreciation expense, and amortization expense to pretax income.
Related Questions
- As Hurriyet is now an international media company, how much of its revenues and EBITDA is coming from Turkey and how much is coming from abroad?
- If EBIT or EBITDA is presented as a performance measure, to which GAAP financial measure should it be reconciled?
- Can I use different types of Earnings (Net Income, EBITDA, EBT)?
