What is EBITDA?
EBITDA stands for earnings before interest, tax, depreciation, and amortisation. It measures operating performance.
Why is EBITDA used?
It isolates core business performance by excluding financing and accounting factors.
How is EBITDA calculated?
It starts with net income and adds back interest, tax, depreciation, and amortisation.
What are limitations of EBITDA?
It ignores capital expenditure and cash flow requirements.
Who uses EBITDA?
Investors, analysts, and lenders use it to compare businesses.