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.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
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".