What is EBITDA| Meaning, Formula and Calculation

While understanding the performance of a company, you often look at figures such as Interest, Profit or Tax. But have you ever heard about EBITDA? It is like the scorecard of a company’s performance, showing you how much money it’s making from its main business. Now, what is EBITDA? If you’re putting your money into stocks, knowing EBITDA can help you pick the right stocks! It’s that simple tool that can make a big difference in your investing game. Ready to learn something useful? In finance, EBITDA is a crucial metric used to assess a company’s financial health and operating performance. EBITDA helps in accessing a company’s profitability from core operations. However, this excludes the impact of non-operational expenses like interest, taxes, and accounting practices such as depreciation and amortisation.