EBITDA

Definition

Earnings Before Interest, Taxes, Depreciation, and Amortization — a proxy for operating cash flow.

Visual Reference

Example

CFOs rely on EBITDA when structuring capital and planning corporate strategy.

In Practice

Also known as: Operating Cash Proxy. Closely related to Operating Income, Net Profit.

Word Usage

Business valuation; M&A; Loan covenants

Use Case

Applied in Corporate Finance contexts: Business valuation; M&A