Tag Archive for Profit

Understanding The Accounting Term EBITDA And How To Use It

Big red dice with financial options

Article Highlights

• Definition of EBITDA
• Use EBITDA to compare businesses
• One gauge of a business’s financial health

The accounting term EBITDA is an acronym that is widely used. It stands for Earnings Before Interest, Taxation, Depreciation, and Amortization, and it is an extremely helpful tool for understanding how one business or industry is faring based on comparing it to others that are doing the same thing. EBITDA’s value lies in the fact that it gives a very quick assessment of a business’s earnings potential; but, because it is not part of generally Read more