| Earnings
Before Interest, Taxes, Depreciation and Amortization - EBITDA |
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A
measure of cash flow calculated as:
=
Revenue
- Expenses (excluding tax, interest, depreciation and amortization)
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EBITDA is looking at the cash flow of a company. By not including
interest, taxes, depreciation and amortization we can see clearly
the amount of money a company is bringing in.
This is especially useful when a company wants to takeover another
company because the EBITDA would cover any loan payments needed to
finance the takeover. |
What
EBITDA Means - a short little article with an example of EBITDA.
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Dictionary
