EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation. It strips out financing and accounting decisions to show how much profit a company's core operations generate.

Because it ignores interest, tax regimes and non-cash charges, EBITDA is widely used to compare the operating performance of companies with different capital structures. It is not a substitute for cash flow — it excludes working-capital changes and capital expenditure.