EBITDA, EBITD, and EBIT are financial terms used to report a company's earnings as they would be without specific deductions taken from the total amount. The acronyms mean, respectively: earnings before interest, taxes, depreciation, and amortization, earnings before interest, taxes, and depreciation, and earnings before interest and taxes.
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EBITDA is often used to compare the profit potential between companies because it allows an "apples-to-apples" comparison. Experts caution, however, that EBITDA does not accurately reflect a company's ability to generate cash and should not be used interchangeably with the term "cash flow".