Earnings before interest, taxes, depreciation and amortization (EBITDA) is a measure of a company’s financial health. EBITDA is an indicator of the profitability of a company’s operations. It isolates the value created by a company during the fiscal year and sets aside expenses related to investments, financing and taxes. Investors often use this indicator to compare the profitability of companies in the same sector.
Synonyms: Earnings before interest, taxes, depreciation and amortization.
Related Terms
The annual report is a (long, somewhat painful) document published once a year by every company listed on the stock market. It contains all an investor needs to know about the company’s performance during 1 fiscal year. Read more
Technical analysis is a way to assess a stock security based on its price history and other market indicators. Read more
Financial statements definition
Financial statements summarize a company’s performance and financial position over a given period. There are three main financial statements: the balance sheet, the income statement and the cash flow statement. Read more
About The Author: Clément Deffrenne
Clément is passionate about finance. He is responsible for communication at Hardbacon, and will entertain you with his articles about a wide variety of topics.
More posts by Clément Deffrenne