EBITDA adds back depreciation and amortization to EBIT - a proxy for operating cash generation before capex.

Why does EBITDA matter?

It's a popular shortcut for comparing operating performance, especially in deals and valuations.

What is a common mistake with EBITDA?

Don't report “EBITDA” with shifting definitions - trends will lie.

EBITDA adds back and to - a proxy for operating cash generation before capex.

Change the lens

Like I'm 5™ is your default. Curious how an investor or beginner would put this?

Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.

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