What does ebitda mean? View the definition of ebitda and all related slang terms containing ebitda below:
earnings before interest, taxes, depreciation and amortization
Usage of EBITDA
EBITDA is a financial metric that reflects a company's profitability before accounting for certain expenses. Specifically, it stands for "earnings before interest, taxes, depreciation, and amortization." This means that the calculation starts with a company's revenue or earnings, subtracts the cost of goods sold or services provided, and then takes out certain expenses. These expenses include interest payments on debt, taxes owed to the government, and depreciation and amortization charges related to the company's assets.
Example of EBITDA used in texting:
1. Hey, have you seen the latest financial report? The company's EBITDA looks really good this quarter!
2. I'm trying to compare two different companies' profitability, do you know their EBITDA margins?
3. The CEO said we need to focus on improving EBITDA in order to grow the business.