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What Is EBITDA? How to Calculate and Why It Matters to Business Owners

inDinero Accounting

EBITDA, short for earnings before interest, taxes, depreciation, and amortization, is a measure of profitability that zeroes in on core operational cashflow—with the “core” being everything that remains after omitting capital expenses and taxes. Then, add the cost incurred from interest, taxes, depreciation, and amortization.