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EBITDA Article
1. Finance Midterm Study
Question | Answer |
---|---|
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. |