EBITDA

Definition:

Acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. A performance statistic used in the majority of debt offerings to show the actual profit made by a company in a given period and to assess a company’s ability to service debt. Financing charges (interest) and tax are unrelated to the performance of the business, and Depreciation and Amortization are accounting concepts only, not real costs incurred by a business.

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