Definition: What is (EBITDA) Earning Before Interest, Taxes, Depreciation, and Amortization?
EBITDA is the financial calculation which is used to measure the profitability of the company before all of the deductions. In other words, EBITDA is the net income with added back taxes, amortization, and depreciation, and interest into the total.
All the expenses like interest, depreciation, and amortization added back to the net income allow the investors and management to analyze the true operating cash flow of the company. For the measurement of the core performance of the company, this calculation is used.
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