The acronym “EBITDA” stands for earnings before interest, taxes, depreciation and amortization.
EBITDA is a metric that measures the profitability for a business and is often used as a basis of comparison between companies given that it shows earnings before the influences of various accounting treatments and financing decisions. Put another way, EBITDA also serves as a proxy for core profitability given non-operating elements are removed in its calculation.
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