Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It is a non-GAAP metric that estimates a company's operating profitability by excluding financing costs, income taxes, and non-cash charges for depreciation and amortization.
Example: For example, in the latest quarter Company A reported EBITDA of $125 million and net income of $40 million, illustrating how EBITDA can differ from net earnings.
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