EBITDA
Pre-deduction profit measure
EBITDA is an accounting acronym for earnings before interest, taxes, depreciation, and amortization.
It measures a company's operating profitability without the effects of financing decisions, tax environments, or accounting choices about asset values.
Investors and analysts use it to compare companies across industries: Their EBITDA margin improved to 22%.
Critics note it can obscure actual cash flow and debt burdens.
Business income total
- amortizationGradual debt reduction schedule
- overheadLocated directly above
Adjusted to standard measure
- recurringHappening repeatedly over time
- comparableAble to be likened
- benchmarkStandard for comparison
- KPIMeasurable performance target
Consisting of many parts
- acquisitionAct of obtaining something
- buyoutPurchase of controlling interest
- LBODebt-funded acquisition
- biddingOffering prices or obeying
Occurring only once
- non-recurringOccurring only once
- restructuringRearranging an existing framework
- normalizationAdjusting to a standard
- synergiesCombined effects exceeding separate
Causing false beliefs
- BuffettRenowned American investor
- manipulationUnderhanded control of others
- overstatedClaimed more than true
revenue
Business income total
- amortizationGradual debt reduction schedule
- overheadLocated directly above
normalized
Adjusted to standard measure
- recurringHappening repeatedly over time
- comparableAble to be likened
- benchmarkStandard for comparison
multiple
Consisting of many parts
- acquisitionAct of obtaining something
- buyoutPurchase of controlling interest
- LBODebt-funded acquisition
one-time
Occurring only once
- non-recurringOccurring only once
- restructuringRearranging an existing framework
- normalizationAdjusting to a standard
synergies · extraordinary · non-operating · litigation · severance
misleading
Causing false beliefs
- BuffettRenowned American investor
- manipulationUnderhanded control of others
- overstatedClaimed more than true
- financial termswealth, asset, currency, balance sheet, audit
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- financial analysisprofit margin, net profit, gross profit, profitability, net income
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- financialsincome, profit, earnings, net income, net profit
- Business AcronymsSKU, UPC, CEO, COO, POS
EBITDAnet income
Profit after all deductions
net profit · bottom line · net earnings · earnings per share · free cash flow