Earnings Before Interest, Taxes, Depreciation, and Amortization
Definition
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a financial metric used to assess a company's operational performance. It is calculated by subtracting cost of goods sold and operating expenses from revenue, but before accounting for interest, taxes, depreciation, and amortization. EBITDA is commonly used for company valuation and comparisons, providing a snapshot of a company's profitability from its core operations.
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