📊 What is EBITDA & Why It Matters?

EBITDA = Earnings Before Interest, Taxes, Depreciation & Amortization

✅ Shows core business profitability
✅ Used for company comparisons & valuations (EV/EBITDA)
✅ Helps assess ability to pay interest

⚠️ BUT it ignores:
– Cash flow
– Asset costs (depreciation)
– Debt impact
– It’s a non-GAAP metric

📌 Useful, but not flawless. Always look deeper.

#FinanceSimplified #EBITDA #BusinessPerformance #InvestSmart