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EBITDA Article

1. Finance Midterm Study

QuestionAnswer
EBITDA Acronym Account term for earnings before interest, taxes, depreciation and amortization.
EBITDA Definition A profitability measure that shows how much cash a business generates from operations.
EBITDA and Dividends EBITDA shows how much money a company generates to do things like pay dividends.
EBIDTA Criticisms It excludes depreciation charges. Machines wear down and will have a cost associated so maybe depreciation shouldn't be ignored.
Comfortable EBITDA Ratio EBITDA of twice the interest costs.
Created by: Elisahbeth
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