What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Similar to net income, it is a metric to show the profitability of the company. Companies like to present it because it is generally higher than net income since it excludes expenses related to the usage of long-term assets and taxes. 


For more information on this topic, check out this article from our friends at Investopedia.


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