EBITDA

Definition

A measurement of the cash flow of a company which includes earnings before interest, taxes, depreciation and amortization.

See Also

Net income, cash flow, earnings, SDE, EBIT.

Tips

Stands for earnings before interest, taxes, depreciation and amortization. EBITDA is an indicator for gauging a company's financial performance, often used to determine a company's profitability, and to compare the performance of companies with each other, EBITDA does not include the owner's salary.