Earnings Before Interest, Taxes, Depreciation and Amortization. An approximate measure of a company's  operating cash flow based on data from the company's income statement. Calculated by looking at  earnings before the deduction of  interest expenses, taxes,  depreciation, and amortization. This earnings measure is of particular interest in cases where companies have large amounts of fixed assets which are subject to heavy depreciation charges (such as manufacturing companies) or in the case where a company has a large amount of acquired intangible assets on its books and is thus subject to large  amortization charges (such as a company that has purchased a brand or a company that has recently made a large acquisition). Since the distortionary accounting and financing effects on company earnings do not factor into EBITDA, it is a good way of comparing companies within and across industries. This measure is also of interest to a company's creditors, since EBITDA is essentially the income that a company has free for interest payments. In general, EBITDA is a useful measure only for large companies with significant assets, and/or for companies with a significant amount of debt financing. It is rarely a useful measure for evaluating a small company with no significant loans. Sometimes also called operational cash flow.
Related information about EBITDA:
- Earnings before interest, taxes, depreciation and amortization ...
 EBITDA (/iːbɪtˈdɑː/, /əˈbɪtdɑː/,) or /ˈɛbɪtdɑː/ is an acronym for ... The   EBITDA of a company gives an indication on the operational profitability of the ...
 
- earning before interest, taxes, depreciation and amortization (EBITDA
 An indicator of a company's financial performance which is calculated in the   following EBITDA calculation: EBITDA is essentially net income with interest,   taxes, ...
 
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- How to Use EBITDA to Value Your Company | Inc.com
 How to Use EBITDA to Value Your Company: It's not the only number potential   buyers look at, but EBITDA will give you a solid idea of how they'll start evaluating ...
 
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA
 We explain the definition of Earnings Before Interest, Depreciation and   Amortization (EBITDA), provide a clear example of the formula, and explain why   it's an ...
 
- EBITDA - YouTube
 Aug 21, 2009 ... Learn more: http://www.khanacademy.org/video?v=v4Fq9LEspzw Review of   Enterprise Value and comparing it to EBITDA.
 
- ebitda - Financial Dictionary - The Free Dictionary
 A measure of a company's ability to produce income on its operations in a given   year. It is calculated as the company's revenue less most of its expenses (such ...
 
- EBITDA - Wiki | The Motley Fool
 EBITDA. Jump to: navigation , search. EBITDA is Earnings Before Interest, Taxes,   Depreciation, and Amortization. Contents. 1 Expanded Definition. 1.1 Further ...