Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

Home » CMA Glossary Term » Ratios and Performance Metrics » Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a financial metric that measures a company’s operating performance by excluding non-operating expenses such as interest, taxes, depreciation, and amortization. Often used in financial analysis, the EBITDA def provides insight into a firm’s profitability from core operations, offering a clearer view of operational efficiency. This metric is pivotal for comparing companies within the same industry.

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