EBITDA — Earnings Before Interest, Taxes, Depreciation, and Amortization
Definition: A measure of a company's operating performance and profitability before non-operating expenses.
Example
In board meetings, you'll often hear something like: "Let's pull the latest EBITDA numbers before we make a call" — shorthand for earnings before interest, taxes, depreciation, and amortization.
When you'll hear it
EBITDA shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to earnings before interest, taxes, depreciation, and amortization — and they expect the room to already know what that means.
FAQs
What does EBITDA stand for?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
What does EBITDA mean in business and finance?
A measure of a company's operating performance and profitability before non-operating expenses.
Where will I hear EBITDA used at work?
EBITDA comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for earnings before interest, taxes, depreciation, and amortization, so people assume you already know the term.