EBITDA – Definition, Application, and Pitfalls in Under 10 Minutes (2022)

EBITDA – Definition, Application, and Pitfalls in Under 10 Minutes (2022)

EBITDA is a commonly used profit metric that represents a ‘proxy for Cash Flow.’ However, analysts must be careful when analyzing EBITDA because it excludes the impact of Depreciation & Amortization, Interest, Taxes, Capital Expenditures, and the impact of Changes in Net Working Capital. In this article, you will learn the definition, common uses, and pitfalls…