EBITDA
EBITDA is an abbreviation of:
Earnings
Before
Interest
Tax
Depreciation and
Amortization
EBITDA is simply the Operating Profit less Depreciation and Amortization*. EBITDA is a measurement of how effective the company is in respect of controlling their operating costs. It also shows how much cash the core operations create.
* Amortization is the value change of Intangible Fixed Assets.
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