EBITDA vs GMV
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and GMV (Gross Merchandise Value) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: EBITDA refers to earnings before interest, taxes, depreciation, and amortization, while GMV refers to gross merchandise value — they describe different things even when they show up in the same sentence.
EBITDA — Earnings Before Interest, Taxes, Depreciation, and Amortization
A measure of a company's operating performance and profitability before non-operating expenses.
GMV — Gross Merchandise Value
The total value of goods sold through a marketplace over a specific period.
When to use EBITDA
Reach for "EBITDA" when the conversation is specifically about earnings before interest, taxes, depreciation, and amortization. A measure of a company's operating performance and profitability before non-operating expenses.
When to use GMV
Reach for "GMV" when the conversation is specifically about gross merchandise value. The total value of goods sold through a marketplace over a specific period.
FAQs
What is the difference between EBITDA and GMV?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization — A measure of a company's operating performance and profitability before non-operating expenses. GMV stands for Gross Merchandise Value — The total value of goods sold through a marketplace over a specific period.
Are EBITDA and GMV the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. GMV = Gross Merchandise Value.
When should I use EBITDA vs GMV?
Use EBITDA when you're specifically referring to earnings before interest, taxes, depreciation, and amortization. Use GMV when the topic is gross merchandise value.