Earnings Before Interest, Taxes, Depreciation, and Amortization. A widely used measure of a business's core operating profitability, stripping out financing and accounting factors. Lenders often use EBITDA to assess a company's ability to service debt.
What to watch
EBITDA excludes interest, taxes, depreciation, and amortization. It is not the same as operating cash flow; it ignores changes in working capital and capital spending.
If a company has $90,000 in EBITDA, that does not mean $90,000 is available to spend or repay loans.
Where this connects to Impresa
You may encounter this concept when reviewing Financial Health. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Financial Health guideDefinitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.