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The Finance Section Glossary

Currently viewing the definition of: EBITDA
 
 
 EBITDA stands for earnings before interest, tax, depreciation and amortisation. Taking out these amounts aids comparison between companies as profits can differ significantly depending on whether acquisitions have been made during the year or a company has significant fixed assets. EBITDA is also an approximate measure of operating cash flow as it strips out depreciation and amortisation which are non-cash items.